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I The impact of AMO (ability, motivation and opportunity) model on Knowledge sharing in family controlled businesses in Hong Kong clothing industry. LEE, Yuk Ling Angie MBA & MGFM Submitted in fulfilment of requirements for Doctorate in Business Administration, The University of Newcastle, Australia September 2016

Transcript of The impact of AMO (ability, motivation and opportunity ...

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The impact of AMO (ability, motivation and opportunity) model

on Knowledge sharing in family controlled businesses in Hong

Kong clothing industry.

LEE, Yuk Ling Angie

MBA & MGFM

Submitted in fulfilment of requirements for Doctorate in Business

Administration, The University of Newcastle, Australia

September 2016

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Statement of Originality

The thesis contains no material which has been accepted for the award of any

other degree or diploma in any university or other tertiary institution and, to the best

of my knowledge and belief, contains no material previously published or written by

another person, except where due reference has been made in the text. I give consent

to the final version of my thesis being made available worldwide when deposited in the

University’s Digital Depository**, subject to the provisions of the Copyright Act 1968.

* * U n l e s s a n E m b a r g o h a s b e e n a p p r o v e d f o r a d e t e r m i n e d p e r i o d .

S i g n a t u r e … … … … … … … … … … … … . . D a t e … … … … … … … … .

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Acknowledgements

I would like to offer my heartfelt gratitude to Dr.Ashish Malik for the guidance and patience

that he provided me to complete this dissertation.

I would also like to express my heartiest gratitude to all my lecturers and classmates

especially, Dr Kelvin Lo, Mr Man Lai Cheung, Alfred Cheng and Sindy Yau for their

knowledge and support throughout my studies. Special thank also go to Dr Philip

Rosenberger III for providing technical advice and guidance for my data analysis.

Thank you Associate Professor Guilherme Pires and Suzanne Ryan for guiding and

motivation. I would also like to thank my ex-lecturers Professor Andrew Sia and

Dr.Wing-Sun Liu for their support and invaluable suggestions.

Last but not least, my deepest appreciation to my family for their patience and support

throughtout the period.

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Content

STATEMENT OF ORIGINALITY ........................................................................................................ II

ACKNOWLEDGEMENTS ................................................................................................................... III

CONTENT ............................................................................................................................................... IV

ABBREVIATIONS ................................................................................................................................ XII

ABSTRACT .......................................................................................................................................... XIII

CHAPTER 1 .............................................................................................................................................. 1

INTRODUCTION ..................................................................................................................................... 1

1.1 INTRODUCTION ..................................................................................................................................................... 1

1.2 STUDY’S BACKGROUND ........................................................................................................................................ 5

1.3 RESEARCH OBJECTIVES ........................................................................................................................................ 5

1.4 RESEARCH PROBLEM AND QUESTIONS .............................................................................................................. 8

1.5 RESEARCH METHOD .......................................................................................................................................... 11

1.5.1 Data analysis ................................................................................................................................................... 11

1.5.2 Structure of the Thesis ................................................................................................................................ 12

1.5.3 Ethical considerations ................................................................................................................................. 12

1.6 EXPECTED CONTRIBUTIONS ............................................................................................................................. 13

1.7 CHAPTER SUMMARY .......................................................................................................................................... 14

CHAPTER 2 ........................................................................................................................................... 16

LITERATURE REVIEW ..................................................................................................................... 16

2.1 INTRODUCTION .................................................................................................................................................. 16

2. 2. KNOWLEDGE MANAGEMENT AND ITS CORE PROCESSES ........................................................................... 17

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2.2.1 Knowledge sharing processes and its impact on firm performance ...................................... 20

2.3 RESEARCH ON FAMILY-CONTROLLED BUSINESSES ...................................................................................... 23

2.3.1 FCBs and knowledge sharing ................................................................................................................... 26

2.4 AMO: THE PERFORMANCE RUBRIC ............................................................................................................... 28

2.5 FCBS AND AMO MODEL ................................................................................................................................... 33

2.5.1 Ability and knowledge sharing ............................................................................................................... 33

2.5.2 Motivation and knowledge sharing ...................................................................................................... 35

2.5.3 Opportunity and knowledge sharing ................................................................................................... 38

2.6 FCBS AND AMO MODEL ................................................................................................................................... 40

2.6.1 FCBs and AMO ................................................................................................................................................. 41

2.7 RESEARCH GAP, KEY QUESTIONS AND HYPOTHESES DEVELOPMENT ........................................................ 42

2.7.1 Research Gap ................................................................................................................................................... 42

2.7.2 Research Questions ....................................................................................................................................... 44

2.8 CHAPTER SUMMARY .......................................................................................................................................... 46

CHAPTER 3 ........................................................................................................................................... 47

RESEARCH DESIGN AND METHODOLOGY ............................................................................... 47

3.1 INTRODUCTION .................................................................................................................................................. 47

3.2 RESEARCH PROCESS: PHILOSOPHY AND PARADIGMS .................................................................................. 48

3.2.1 Positivist research approaches ............................................................................................................... 49

3.2.2 Quantitative Research ................................................................................................................................. 50

3.2.3 Justification for a positivist and quantitative methodology ...................................................... 51

3.3 RESEARCH DESIGN ............................................................................................................................................. 52

3.4 RESEARCH QUESTION AND HYPOTHESIS DEVELOPMENT ............................................................................ 53

3.4.1 Research question ......................................................................................................................................... 53

3.4.2 Hypothesis development ............................................................................................................................ 55

3.5 CONCEPTUAL FRAMEWORK OF THE RESEARCH ............................................................................................ 56

3.5.1 Dependent variable ...................................................................................................................................... 57

3.5.2. Independent variables ................................................................................................................................ 60

3.5.3. Moderator ........................................................................................................................................................ 62

3.5.4 Additional background data .................................................................................................................... 62

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3.6 QUESTIONNAIRE DESIGN AND SAMPLING ...................................................................................................... 66

3.6.1. Measurement and scales ........................................................................................................................... 66

3.6.2 Data collection and sampling .................................................................................................................. 67

3.6.3. Defining the Research population ........................................................................................................ 68

3.6.4. Selection of sample ...................................................................................................................................... 69

3.6.5. Sampling frame .............................................................................................................................................. 69

3.6.6. Sample size ...................................................................................................................................................... 70

3.7. DATA COLLECTION METHOD ........................................................................................................................... 71

3.7.1. Administration of data collection ......................................................................................................... 71

3.7.2. Data analysis .................................................................................................................................................. 72

3.8. POWER OF TESTS OF INTERACTIONS ............................................................................................................ 72

3.9. DESCRIPTIVE STATISTICS ................................................................................................................................. 74

3.9.1. Reliability and validity ............................................................................................................................... 75

3.9.2. Reliability analysis with Cronbach’s alpha test .............................................................................. 77

3.9.3. Testing the moderating effect................................................................................................................. 77

3.10 SUMMARY AND LIMITATIONS ........................................................................................................................ 80

CHAPTER 4 ........................................................................................................................................... 82

DATA ANALYSIS AND RESULTS ................................................................................................... 82

4.1 INTRODUCTION .................................................................................................................................................. 82

4.1.1 Data preparation........................................................................................................................................... 83

4.1.2. Data coding and entry ............................................................................................................................... 84

4.2. SAMPLE PROFILE ............................................................................................................................................... 86

4.3 CHARACTERISTICS OF DEPENDENT AND INDEPENDENT VARIABLES ......................................................... 90

4.3.1 Profile of FCBs and Non-FCBs .................................................................................................................. 90

4.3.2 Descriptive statistics of items in this study ........................................................................................ 91

4.4 PRELIMINARY ANALYSIS ................................................................................................................................... 92

4.5 SKEWNESS AND KURTOSIS ............................................................................................................................... 93

4.6 TEST OF DISTRIBUTION NORMALITY .............................................................................................................. 94

4.7. SUMMARY OF DESCRIPTIVE DATA .................................................................................................................. 98

4.8 RELIABILITY AND VALIDITY OF MEASURED DATA ........................................................................................ 98

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4.8.1. Validity of measured data ........................................................................................................................ 98

4.8.2. Validity of independent and dependent variables ........................................................................ 99

4.9. RELIABILITY ANALYSIS .................................................................................................................................. 101

4.9.1. Ability (Training for Workers) ............................................................................................................ 101

4.9.2. Motivation (Incentive Systems) .......................................................................................................... 101

4.9.3. Opportunity (Trust) ................................................................................................................................. 102

4.9.4. Knowledge Sharing .................................................................................................................................. 102

4.9.5 Discriminant and Construct validity ................................................................................................. 103

4.10. HYPOTHESIS TESTING ................................................................................................................................. 104

4.10.1 Hypothesis 1.1 ........................................................................................................................................... 108

4.10.2 Hypothesis 1.2 ........................................................................................................................................... 108

4.10.3 Hypothesis 1.3 ........................................................................................................................................... 109

4.11. PROCESS MACRO IN SPSS FOR B ANALYSIS ............................................................................................. 110

4.11.1. Hypothesis 2.1 .......................................................................................................................................... 111

4.11.2. Hypothesis 2.2 .......................................................................................................................................... 113

4.11.3. Hypothesis 2.3 (H2.3) ............................................................................................................................ 117

4.12 SIMPLE SLOPE ANALYSIS .............................................................................................................................. 120

4.13 SUMMARY OF HYPOTHESIS TESTING .......................................................................................................... 121

4.14 CHAPTER SUMMARY ..................................................................................................................................... 122

CHAPTER 5 ......................................................................................................................................... 124

DISCUSSION AND CONCLUSION ................................................................................................ 124

5.1 INTRODUCTION ................................................................................................................................................ 124

5.2 MAJOR FINDINGS .............................................................................................................................................. 124

5.3 RESEARCH FRAMEWORK ................................................................................................................................ 125

5.4. DISCUSSION OF FINDINGS .............................................................................................................................. 126

5.5 MODERATING EFFECT OF FCBS .................................................................................................................... 129

5.6 THEORETICAL IMPLICATIONS ........................................................................................................................ 132

5.7 MANAGERIAL IMPLICATIONS ......................................................................................................................... 134

5.8 CONTRIBUTIONS .............................................................................................................................................. 136

5.9 LIMITATIONS AND FUTURE RESEARCH ......................................................................................................... 137

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5.10 SUMMARY AND CONCLUDING REMARKS .................................................................................................... 140

Reference .......................................................................................................................143

APPENDICES ...................................................................................................................195

APPENDIX A EMAIL INVITATION .....................................................................................195

APPENDIX B: ORANGIZATION CONSENT FORM .............................................................197

APPENDIX C: ORGANIZATION INFORMATION STATEMENT ...........................................200

APPENDIX D: SURVEY ON BUSINESS PRACTICE ..............................................................204

APPENDIX E: Frequency Table ........................................................................................210 List of Tables

TABLE 3.4: QUESTIONNAIRE ROAD MAP……..……...…………………………………………………..…54

TABLE 3.5.1: MEASURING FORMAL AND INFORMAL KNOWLEDGE SHARING(DV)……….59

TABLE 3.5.2A: TRAINING FOR WORKERS …………………………………………………………………….61

TABLE 3.5.2B: INCENTIVE SYSTEMS ……………………………….……………………………………………61

TABLE 3.5.2C: TRUST…………………..……….……….……………………..……………………………………..61

TABLE 3.5.3: INDENTIFICATION OF FCBS……………………………………………………………………..62

TABLE 3.5.4: DEMOGRAPHIC QUESTIONS IN THE QUESTIONNAIRE ………………….…..…..65

TABLE 4.1.2 DATA CODING FOR ALL MEASURMENT VARIABLES………………………………….85

TABLE 4.2A: RESPONSE FREQUENCIES OF DEMOGRAPHIC DATA ……………………………..89

TABLE 4.3.1A: RESPONSE FREQUENCIES OF FCBS DATA …………..…………………..…………….90

TABLE 4.6A: TESTS OF NORMALITY ................................................................................. 94

TABLE 4.6B: DESCRIPTIVE ANALYSIS OF FCBS AND NON-FCBS IN THE HKCI .................... 97

TABLE 4.8.2: FACTOR ANALYSIS OF INDEPENDENT VARIABLES .....................................100

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TABLE 4.9.5: CORRELATIONS OF FACTORS IN THIS STUDY ..........................................104

TABLE 4.10A: MULTICOLLINEARITY TEST RESULTS IN MODEL 1 ....................................105

TABLE 4.10B: MULTICOLLINEARITY TEST RESULTS IN MODEL 2 ....................................106

TABLE 4.10.3: MODEL SUMMARY ..................................................................................110

TABLE 4.11.1A: MODEL SUMMARY IN BETWEEN TRAINING FOR WORKERS IN FCBS ...111

TABLE 4.11.1B: CONDITIONAL EFFECT OF TRAINING FOR WORKERS(X) AND

KNOWLEDGE SHARING(Y) AT VALUES OF FCBS (M) …..…………................................ 112

TABLE 4.11.1C: CONDITIONAL EFFECT OF TRAINING FOR WORKERS(X) AND

KNOWLEDGE SHARING(Y) AT VALUES OF FCBS (M) (JOHNSON-NEYMAN SIGNIFICANCE

REGIONS(S) ……………………………………………………………………………………........................... 113

TABLE 4.11.2A: MODEL SUMMARY IN BETWEEN INCENTIVE SYSTEMS IN FCBS ...........114

TABLE 4.11.2B: CONDITIONAL EFFECT OF INCENTIVE SYSTEMS(X) AND

KNOWLEDGE SHARING(Y) AT VALUES OF FCBS (M) …..………….................................. 115

TABLE 4.11.2C: CONDITIONAL EFFECT OF INCENTIVE SYSTEMS (X) AND

KNOWLEDGE SHARING(Y) AT VALUES OF FCBS (M) (JOHNSON-NEYMAN SIGNIFICANCE

REGIONS(S) ………………………………………………………………….…………………....................... 116

TABLE 4.11.3A: MODEL SUMMARY IN BETWEEN TRUST IN FCBS..................................117

TABLE 4.11.3B: CONDITIONAL EFFECT OF TRUST (X) AND KNOWLEDGE SHARING(Y) AT

VALUES OF FCBS (M) ………………………………………………....………….................................. 118

TABLE 4.11.3C: CONDITIONAL EFFECT OF TRUST(X) AND KNOWLEDGE SHARING(Y) AT

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VALUES OF FCBS (M) (JOHNSON-NEYMAN SIGNIFICANCE REGIONS(S) …………………… 119

TABLE 4.13: SUMMARY OF HYPOTHESES TEST RESULTS. ...................................................122

List of Figures

FIGURE 1.4: FRAMEWORK AND RESEARCH QUESTIONS .................................................... 9

FIGURE 2.2: THE SECI MODEL (NONAKA & TAKEUCHI, 1995) .......................................... 19

FIGURE 3.1: OUTLINE OF CHAPTER 3 ............................................................................... 48

FIGURE 3.4.1: FRAMEWORK WITH RESEARCH QUESTIONS ............................................. 54

FIGURE 3.5: CONCEPTUAL FRAMEWORK ........................................................................ 57

FIGURE 3.6.2: THE STEPS OF THE RESEACH METHOD ...................................................... 67

FIGURE 3.9.3A: REGRESSION MODEL FOR ABILITY( TRAINING FOR WORKERS) AND FCBS

.......................................................................................................................................... 78

FIGURE 3.9.3B: REGRESSION MODEL FOR MOTIVATIONFRAMEWORK AND RESEARCH

QUESTIONS ....................................................................................................................... 79

FIGURE 3.9.3C: REGRESSION MODEL FOR OPPORTUNITY(TRUST) AND FCBS ................. 80

FIGURE 3.10: FLOW CHART OF THE MEASUREMENT METHODS USED IN THE RESEARCH

.......................................................................................................................................... 81

FIGURE 4.1: CONCEPTUAL MODEL FOR AMO MODEL IN KNOWLEDGE SHARING ........ 82

FIGURE 4.6: SUMMARY OF HISTOGRAMS FOR ALL VARIABLES IN THE MODEL .………… 95

FIGURE 4.10: OPERATIONAL MODEL KEY HYPTHOESIZED RELATIONSHIP BETWEEN AMO

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FACTORS AND KNOWLEDG SHARING… ..........................................................................107

FIGURE 4.10.1: OPERATIONAL MODEL FOR ABILITY (TRAINING FOR WORKERS) AND

KNOWLEDGE SHARING. ..................................................................................................108

FIGURE 4.10.2: OPERATIONAL MODEL FOR MOTIVATION (INCENTIVE SYSTEMS) AND

KNOWLEDGE SHARING.. .................................................................................................109

FIGURE 4.10.3: OPERATIONAL MODEL FOR OPPORTURNITY (TRUST) AND KNOWLEDGE

SHARING. ........................................................................................................................109

FIGURE 4.11.1: OPERATIONAL FOR ABILITY (TRAINING FOR WORKERS) AND

KNOWLEDGE SHARING ...................................................................................................111

FIGURE 4.11.2: OPERATIONAL FOR MOTIVATION (INCENTIVE SYSTEMS) AND

KNOWLEDGE SHARING ...................................................................................................112

FIGURE 4.11.3: CONCEPTUAL MODEL FOR OPPORTURNITY (TRUST) AND KNOWLEDGE

SHARING .........................................................................................................................113

FIGURE 4.12: SIMPLE SLOP RESULT FOR AMP FACTOR AND FCBS ................................120

FIGURE 5.3: AMO FACTORS APPLIED TO KNOWLEDGE SHARING AND ARE INDIVIDUALLY

MODERATED BY FCBS .....................................................................................................125

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Abbreviations

• FCBs- Family control businesses

• NonFCBs – Non Family control businesses

• HKCI – Hong Kong Clothing Industry

• AMO – Ability, Motivation, Opportunity

• TW – Training for workers

• IS – Incentive systems

• T – Trust

• KS – Knowledge sharing

• FK – Formal Knowledge

• IK – Informal Knowledge

• HKTDC – Hong Kong trading department council

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Abstract ___________________________________________________________________________________________________ This study analyses the relationship between knowledge sharing, family controlled

businesses (FCBs), training for workers, incentive systems and trust in Hong Kong’s

Clothing Industry (HKCI). The study contributes by investigating the impact of the

ability, motivation and opportunity (AMO) paradigm focusing on training for

workers(A), incentive systems(M) and trust(O) and the moderating effects of Family

control businesses (FCBs) on knowledge sharing in Hong Kong’s clothing industry.

Such an investigation is timely and relevant when a number of Chinese family

businesses are facing the dilemma of succeeding their businesses through appropriate

governance structures, operations and systems so as to continue their entrepreneurial

spirit and effectively manage the generational transitions in Hong Kong (HK) (Au, K et

al. 2013).These challenges result in failure of some family control businesses from

managing succession and intergenerational leadership Issues (Chua et al., 2003; Long

& Chrisman, 2014). Thus, sharing key knowledge by people in FCBs through

appropriate people management practices is important for sustained succession in

FCBs.

The AMO paradigm has received considerable research attention in the field of Human

Resource Management (HRM) in the last two decades. The AMO model offers a useful

framework for studying how certain HRM practices can impact knowledge sharing

performance outcomes.

Based on a review of literature, a conceptual model showing the constructs of AMO was

developed and six hypotheses were then generated and tested in this research. The

findings of the research suggest that incentive systems and trust have a significant

impact on knowledge sharing but training for workers does not have any significant

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impact on knowledge sharing. The findings also revealed that variables of training for

workers, incentive systems, and trust have a significant and negative impact for FCBs.

Overall, the findings from this study have implications for theory and practice. The

results highlight the relationships among the AMO components and Knowledge

sharing performance in a new context, especially by analysing the moderating impact

of FCBs. In terms of managerial implications for practice, this research highlights that

FCBs need to focus strategically on AMO components that contribute most in

enhancing a firm’s knowledge sharing performance.

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Chapter 1

Introduction

1.1 Introduction

In Hong Kong, many Chinese family businesses are facing the dilemma of how to manage

and sustain their family business, often considering a range of options such as appropriate

governance structures, operations, and systems to sustain their entrepreneurial spirit and

to successfully pass on their businesses to future generations (Au et al. 2013). This study

attempts to address the above challenges by focussing on how family businesses can

avoid failure and improve succession of intergenerational leadership through the vital

processes of knowledge sharing (Chua et al., 2003; Long et al., 2014). The focus on

knowledge sharing in family businesses is relevant as knowledge has been regarded as a

critical resource for firms’ sustained performance and growth (Witherspoon, Bergner,

Cockrell & Stone, 2013). Earlier studies have argued that knowledge sharing is vital for

relaying critical business information from senior leadership to employees to achieve

sustained growth and profits (Kaplan and Norton, 2001, Quigley, 1994; Witherspoon et al.,

2013). While there have been several reviews of the literature on knowledge sharing and

its antecedents, these reviews often focus on an aspect of the wider knowledge

management literature or a specific industry sector (e.g. Grossman, 2007; Yahya & Goh

2002; van Rooi & Snyman, 2006). Witherspoon et al.’s (2013) recent meta-analytic review,

classified the literature into four key areas: intentions and attitudes of employees towards

knowledge sharing, organisational culture, rewards and gender as key foci of the studies

thus far. All three groups of antecedents: intentions and attitudes, organisational culture

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and rewards tested positive towards knowledge sharing, however, there was no support

for the impact of gender; and country of origin was as a key moderator in knowledge

sharing behaviour. Their review of 46 studies points to several gaps in the research on this

important topic. There was only one study that focused on managers in Hong Kong (Chow

& Chan, 2008), using theory of reasoned action; not focused on family controlled

businesses; and finally, their review highlighted the need to understand the barriers to

knowledge sharing. With intentions, attitudes, culture and rewards being noted as

significant factors in explaining knowledge sharing behaviour, it is logical to pursue further

research that examines the role of human resource management (HRM) practices on

knowledge sharing. Further, given the limited focus on Hong Kong, this study argues that

subsequent generations of family businesses in the Hong Kong’s clothing industry (HKCI)

can benefit from understanding the key antecedents of knowledge sharing, especially in

the context of HKCI’s family-owned businesses.

The present research uses Hong Kong’s clothing industry (HKCI) as the main research

context, and focuses on the effect of family FCBs, training and skills, incentive systems,

and trust on knowledge sharing. Insights from this research are intended to contribute to

the literature on people management factors such as ability (training for workers,

motivation (incentive systems) and opportunity (trust) in the context of FCBs that are

central for knowledge sharing in HKCI.

This research is vital for addressing managerial problems that Chinese family businesses

are currently facing, especially with the concerns regarding the effectiveness of

governance structures, operations and systems to continue the entrepreneurial spirit in

the process of generational transition in HK (Au, K et al. 2013). These challenges are

worthy of attention as there is evidence of failure to retain family succession after a shift

in intergenerational leadership. (Chua et al., 2003; Long et al., 2014).

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The AMO (ability, motivation, opportunity) model is a widely accepted model in Human

Resource management (HRM) literature and its linkages with firm performance. As noted

above, given the importance of cultural and human intentions and behavioural factors,

focusing on the AMO paradigm seems logical. Furthermore, this is also in line with earlier

research (Chua et al., 2004; Wong & Aspinwall, 2005; Mooradian, 2006; Zahra, 2007; Yang,

2007) of the three key AMO factors: ability (training for workers), motivation (incentive

systems) and opportunity (trust). This study will adapt constructs from this dominant AMO

paradigm and based on earlier studies (e.g., Salis & William, 2008; North, 2015) apply the

model in the context of HKCI’s FCBs on knowledge sharing. A particularly helpful aspect of

the AMO model is that it assumes that all AMO factors influence knowledge sharing and

we need to explore further of any moderating effect of FCBs (Boselie, 2012; Oudkerk Pool,

2016). The presence of relevant AMO variables in FCBs within the HKCI can help improve

our understanding of knowledge sharing and its consequent impact in enhancing the

competitive advantage and business performance of FCBs.

Limited studies have thus far investigated knowledge sharing among family-owned firms

in HK (Kontinen and Ojala, 2010; Lok and Crawford, 2004), especially in the clothing

industry (HKCI). The HK clothing industry is a reputable and an important manufacturing

sector in HK. It is the third largest manufacturing employer in HK, with around 900 firms,

employing around 5,773 people in the HKCI, and with revenues exceeding HK$ 143 billion

as of December 2015 (HKTDC, 30 June 2016). The HKCI imposes a powerful influence on

the global market, especially with its major exports to the United States and European

markets. It occupies a prominent position in HK’s domestic economy. The clothing

industry’s supply chain is well developed in HK ensuring the major clothing manufacturing

sector of HK with good quality standard, quality control and products supply, and logistical

arrangement, among others (Dickerson 1999).

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Hong Kong is the only city in China that blends Chinese tradition with a British colonial

heritage influence (Enright et al., 1997; Henderson, 2001). Most firms may simply focus

on lower agency costs and shorter production lead times with little focus on the

importance of knowledge sharing to enhance firm performance (Lin, 2007). This study

investigates how family-owned firms share their knowledge with key stakeholders in their

business and the factors that have an impact on profitability.

This research fills the research gaps by evaluating the AMO independent variables

(training for workers, incentive systems and trust that is created by organizational

leadership) as well as exploring the moderating role of (FCBs) in knowledge sharing in HK.

Although a study examined the moderating role of technological capabilities in firms with

family ownership on knowledge sharing in the context of the United States (Zahra et al.,

2007), the findings cannot be easily applied to an Asian setting especially because HK is

well-known to exhibit an aspect of a crossvergent culture, a unique fusion of Western and

Eastern cultural context (Ralston, 2008., Ralston et al., 2008; Sarala and Vaara, 2010).

Furthermore, only few studies have focused on family controlled businesses (FCBs) in the

extant literature on knowledge sharing from a HR perspective (Chrisman et al.,2006; Miller

and Breton-Miller,2006). Thus this research is timely and will contribute to the emerging

body of literature on knowledge sharing from an Asian market context. Moreover,

despite an increasing number of research focusing on FCBs (Heck & Mishra, 2008), the

review literature reveals that there is a relatively limited body of research that focuses on

examining FCBs in relation to knowledge sharing.

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1.2 Study’s background

Knowledge sharing has been regarded as a very important determinant of success since the

seminal work of Nonaka and Takeuchi (1995). Nonaka and Toyama (2003) as well as

Jasphapara (2004), using concepts from KM literature (such as knowledge creation, sharing,

and integration), highlighted the importance of knowledge sharing. Critical for the purposes

of this study is the influence of HRM practices using the AMO paradigm (such as training for

workers, incentive system, trust) on knowledge sharing.

Zahra (2007) noted there are challenges in efficiently measuring knowledge-sharing; in the

main it has two key elements: Formal and informal knowledge sharing that need to be

observed. The willingness and attitude of employees are among the prominent factors to

motivate effective knowledge sharing in firms. A firm’s performance and growth is often

affected by conflict between and unwillingness of family members and employees to share

information with others in the organization either because of the ownership issues or due

to some of family members not willingly wanting to make any changes (Hitt, et al., 2006;

Sirmon & Hitt, 2003; Zahra et al., 2006). This research will therefore examine the

moderating effect of FCBs on knowledge sharing in the context of HKCI using the established

human resource rubric of AMO.

1.3 Research Objectives

In view of the above, this research has the following overarching objectives:

1) To address the theoretical and empirical gaps examining the relationships between AMO

model, knowledge sharing and FCBs.

2) To explain the relationship AMO model has with knowledge sharing in the context of

HKCI.

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3) To gain insights about the benefits of knowledge sharing for workers in the HKCI for

enhancing firm’s competitive advantage.

Addressing the first research objective, this study investigates the major antecedents of

knowledge sharing using the AMO model (Salis and William, 2008). Further, little research

has focused on knowledge sharing and examining the moderating effect of FCBs. Although

research interests on the topic of knowledge sharing is on the rise, there exists no

comprehensive understanding of how the AMO model variables (such as training for

workers, incentive systems, and trust) and FCBs impact on knowledge sharing. Pursuing

this research is vital as managing individual’s ability, motivation and opportunity to apply

their knowledge and skills has been considered as the dominant approach in HRM for

understanding how individual level performance can be enhanced. It can thus be argued

that if a person’s ability, motivation and opportunity needs are not addressed, their

performance (behaviour towards an organisational activity) such as in this case, knowledge

sharing, may be adversely affected.

Addressing the second research objective, the review of literature points that a vast

majority of research on knowledge sharing is based on research from Western nations or

other Asian economies, (see for example, Mooradian et al., 2006; Wong and Aspinwall,

2005; Witherspoon et al., 2013; Zahra et al., 2007). Thus, this study is timely as it will add

to the relatively limited research on knowledge sharing in Asia, especially in Hong Kong. The

complexity of Hong Kong’s post-colonial and Chinese cultural context not only represents a

challenge to researchers, but also offers an opportunity to improve both empirical

understanding and theoretical advancement of knowledge sharing.

The above importance of knowledge sharing has been well-established in the context of

Western nations since the early 1990s and has in the last decade attracted increased

attention in Asian countries (Davison & Ou, 2007). Firms now recognize that knowledge

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management strengthens its competitive advantages and enhances its capability to

reduce agency costs, increase productivity, and shorter the lead times for production (Lin,

2007). However, there is still limited empirical basis for understanding the impact of

family members on knowledge sharing in firms (Lai, 2010). Barring a few studies that focus

on family controlled businesses (FCB) (Williamson, 1999; Heck & Mishra, 2008; Makadok,

2003), research gaps exist in relation to FCBs’ impact on knowledge sharing outcomes and

even more so, for FCB firms in the HKCI.

Hong Kong is developing into a business networking center for global clothing sources (Jin,

2004). Many clothing manufacturing firms in Hong Kong have already developed a strategic

mechanism for improving competitiveness and reducing resource disadvantages through

knowledge sharing using internal to external sources.

The research context of Hong Kong as the only Chinese city with a unique business culture

that combines elements of both Eastern and Western cultures, a strong educational

system and political organization offers this research the opportunity to explore the

problem in context (Enright, Scott & Dowell, 1997). Historically, firms in HK have been

doing business with Western firms directly and distinguish themselves from other Chinese

communities in Asia. However, studies of crossvergence suggest there are possibilities of

convergence and divergence occurring in HK’s business environment (Ralston et al., 2008).

Such changes provide a fertile ground for conducting intensive analysis about the

correlation between family FCBs, AMO factors (workers’ training, incentive systems and

trust) and knowledge sharing in the HKCI. Internal changes brought about by such

conditions may well alter the internal day-to-day transactions between employees, posing

new demand with varying degrees of hybrid cultures in their control systems.

Further, as HKCI comprises of majority of manufacturing firms and there is an insufficient

empirical research that has tested the association between knowledge sharing, AMO

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variables and FCBs, thus this research is expected to improve our understanding of

knowledge sharing performance and competitiveness of HKCI.

Finally, in addressing the third research objective, this research aims to capture the

potential benefits for practitioners who are employed by the HKCI including clothing related

businesses such as materials suppliers, wholesalers, and retailers. It is anticipated that the

findings of this research will inform firms and knowledge workers about how to motivate

the workers to share knowledge. Through this research implication for decision makers and

practicing managers regarding how best to design and implement AMO factors to succeed

in knowledge sharing for enhancing firms’ competitiveness in the marketplace are likely to

be addressed.

1.4 Research problem and questions

It is argued that the management and leadership styles of owners in FCBs can potentially

affect their knowledge-sharing performance and motivate staff to share knowledge (Sull &

Wang, 2005). Further, most employees working in the HKCI undertake complex knowledge

work in design, logistics, manufacturing and operating highly automated machines for the

industry. In this context, the study’s research setting is suitable for exploring how

knowledge workers share their knowledge especially in FCBs. The literature on knowledge

workers suggests that “knowledge workers predominantly do work and solve challenges

that have already been done and solved before their organizations.” (Marketwired-

viewed on December 10, 2014). Drucker (1999) stated that knowledge worker

productivity is a crucial management resource for the 21st century and that knowledge is

regarded as a key element in a firm to improve its business performance (Arthur &

Huntley, 2005). Individual knowledge sharing contributes to sustainable competitive

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advantages and a firm’s knowledge management practices (Apshvalka and Wendorff,

2005).

To fully investigate HKCI’s context, this research employs a quantitative survey of HKCI’s

businesses and uses factor analysis to test the AMO theoretical framework and its impact

on knowledge sharing behavior. It further explores whether FCBs acts as moderator. Based

on a review of the literature (covered in detail in the next chapter- Chapter 2), this study’s

research questions aim to address the identified gaps in the literature and forms the basis

of the study’s guiding theoretical framework (See Figure 1.4 below).

Figure 1.4 Framework and Research Questions

As this research investigates the relationship between antecedents of ability (training

workers), motivation (providing incentive systems), opportunity (creating an environment

of trust) of employees, ownership (FCBs) with knowledge sharing behaviors in the HKCI,

three research questions and six hypotheses have been formulated:

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Research Questions:

Q1 Does ability (training workers), motivation (providing incentive systems), opportunity

(creating an environment of trust) of employees have a significant effect on knowledge

sharing in the HK clothing industry (HKCI)?

Q2 what are the key relationships between FCBs, AMO factors and knowledge sharing in

the HKCI firms?

Hypotheses

Hypothesis H1.1:

In the HKCI, training for workers is positively related to knowledge sharing.

Hypothesis: H1.2

In the HKCI, incentive systems are positively related to knowledge sharing.

Hypothesis H1.3

In the HKCI, trust is positively related to knowledge sharing.

Hypothesis H2.1

In the HKCI, FCBs act as a moderating factor in the relationship between training for workers

and knowledge sharing.

Hypothesis H 2.2

In the HKCI, FCBs act as a moderating factor in the relationship between the incentive

systems and knowledge sharing.

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Hypothesis H2.3

In the HKCI, FCBs act as a moderating factor in the relationship between trust and knowledge

sharing.

1.5 Research Method

This section provides a brief overview of the research methodology employed. Details of

this will be further elaborated in Chapter 3 of the thesis.

1.5.1 Data analysis

This research involves a survey of 900 HK clothing industry firms through an internet-based

questionnaire from geographically dispersed firms in the HKCI. The target is to obtain 100

responses from senior executives such as top management, executives, and managers. A

quantitative survey is deemed as the most effective method for data collection, especially

when a large sample of quantitative data needs to be collected and analyzed (Saunders,

Lewis and Thornhill, 2011). This study follows the design employed in previous research

(Chua et al., 2004; Mooradian, 2006; Wong & Aspinwall, 2005; Zahra, 2007) and adapts the

questions employed by earlier studies to fulfil the research objectives of this study. The

reliability and validity of each theoretical construct will be verified using established tests.

A simple convenient sampling was adopted in the HKCI in which family-owned businesses

and non-family owned businesses have not been established conclusively. Next, the

sampling frame will comprise of a list of assigned directions and significant elements drawn

through a representative sample (Malhotra 2008).

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Using a seven-point Likert scale, various theoretical constructs were measured through

established items from the literature and administered through an anonymous self-

completion online survey. The three AMO factors (training for workers, incentive systems,

and trust) and FCBs were analyzed. Several statistical tests were used to measure the

information collected in the online questionnaire and to test whether the research results

supported the hypotheses. Analytic techniques employed include descriptive analysis,

factor analysis, Pearson’s product moment correlation, and multiple regression analysis

using Process Macro in SPSS (Hayes, 2013), SPSS software (Version 22) for reliability, validity,

and testing the study’s hypotheses (Hair, 2006).

1.5.2 Structure of the Thesis

There are five chapters for this thesis. Chapter 1 sets the introduction and background, and

includes a briefing of the study’s research questions, hypothesis and the rationale for

conducting the study. Chapter 1 concludes with a short note on ethical considerations that

have been adhered to in this study and the expected contributions this study seeks to make.

Chapter 2 presents a comprehensive review of the extant literature on knowledge sharing

with the aim of clearly delineating the gap in the literature that this study aims to address.

Chapter 3 states the research methodology and design, and introduces the research

framework, whereas Chapter 4 provides the data analysis techniques and results. Chapter

5, the final chapter, discusses the results and concludes with implications for practice and

future research.

1.5.3 Ethical considerations

Confidentiality, anonymity, and consent were key ethical issues addressed in this research.

The student researcher complied with all the ethical standards set by the University of

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Newcastle, Australia. This study treats all information collected from respondents with

confidentiality and has assured respondents through the use of an anonymous online

survey, wherein the respondents cannot be identified. The disclosure of individual

participants’ demographics and unique characteristics are also protected by the ethics

protocol (H-2015-0383) of this study.

Participation in the research is voluntary and as such organizations in the HKCI were emailed

with an invitation to participate in this study. By forwarding the invitational email and the

link to the study’s online questionnaire in the Participant Information Sheet document (See

Appendix for details), to senior executive who is in the position of a Manager/Top

executive/business ownership or owner of a family owned business in the HKCI, the

respective organisation may provide consent and then participate in this study.

Consentingparticipants were invited to complete an online questionnaire on knowledge

sharing in the HK clothing industry by clicking on the web link provided at the end of the

Participant Information Sheet in the invitational email. The information collected was

stored securely and remains strictly confidential. The data collected were kept in an

aggregate form and no individual or identifiable information would be released to others.

All materials collected will be available to the researcher for five years. No compensation

was given for participation. Ethical standards were thus observed as per the University’s

guidelines.

1.6 Expected Contributions

The findings from this study contribute towards a better understanding of the importance

of knowledge sharing in the context of FCBs in HKCI. The findings also form the basis for

related further studies in other business sectors as well as in other countries in relation to

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the relationships covered in this study. This could also provide a wide range of valid data for

HKCI practitioners to develop knowledge sharing strategies.

In terms of policy contributions this study highlights the importance of training for achieving

better knowledge sharing outcomes, especially in FCBs and in developing organizational

policies to support this.

From a theoretical perspective, the use of the AMO model to explain how certain HRM

practices impact knowledge sharing is a key contribution to the literature on knowledge

sharing. Although some of the AMO factors are commonly used to explain the effect of

knowledge sharing, whether this model has been fully evaluated in the knowledge-sharing

field remains unclear. Hence, this study opens this future stream of analyzing a set of HRM

practices and its impact on knowledge sharing in a range of contexts

Finally, in terms of practical contributions for managers, this research explores the effect of

management, leadership, incentive systems, trust, and FCBs on knowledge sharing in HKCI.

Knowledge sharing needs to be understood in terms of both the formal and informal modes

in relation to the moderating effect of FCBs. Insights are derived for managers to

understand the critical success factors for future strategic planning purposes and allocating

resources that will enhance knowledge sharing behaviors and create opportunities for

sustained competitive advantages.

1.7 Chapter Summary

To summarize, this research aims to explore FCBs’ moderating effect on knowledge sharing

and aims to fill a gap in the literature on knowledge management and HRM by focusing on

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knowledge sharing in the HKCI. Contributions at theoretical and managerial levels have

been identified. The changing business environment is forcing family owned clothing

industry firms to look for suitable strategies to improve their competitive advantages. By

considering the ownership type (FCBs) in the analysis, knowledge sharing understanding in

HKCI may help firms develop their capacity for business succession, especially in the

direction of intergenerational leadership.

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Chapter 2

Literature Review

2.1 Introduction

The chapter develops the study’s research questions following a review of the literature.

Exploring how the relationship between knowledge sharing affects the performance in

family-controlled businesses (FCBs) by employing the commonly understood performance

rubric: the ability, motivation and opportunity (AMO) framework (Blumberg & Pringle,

1982; Vroom, 1964) is specifically reviewed. This is a widely used framework in the field of

HRM for analyzing performance drivers such as providing training for workers (ability),

offering adequate incentive systems (motivation), and creating a trusting environment

(opportunity) for employees to have a positive impact on knowledge sharing behaviors of

employees.

Knowledge has been regarded as a critical resource that can be shared through both

informal and formal ways (Nonaka, 1995). People communicate information, experiences,

insights, in different ways (Liao, 2007). While there is some recent interest that considers

the impact of HRM on a range of knowledge management processes (e.g. knowledge

sharing and knowledge transfer), there is little evidence of this gap being explored in the

context of FCBs in an Asian economy such as Hong Kong (Cabrera & Cabrera, 2005;

Minbaeva, Foss & Snell, 2009; Minbaeva et al., 2003; Minbaeva, 2013). To fill this

theoretical gap, the moderating effects of FCBs on knowledge sharing is included in the

research framework.

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The rest of the chapter is structured as follows. The first part examines the theoretical

foundations of knowledge management (KM) and, more specifically, knowledge sharing.

The second part discusses the AMO model and its relationship with knowledge sharing.

The third part examines the process of influencing knowledge sharing and the intensity of

collaborative relationships between the AMO model and leadership patterns in FCBs. The

fourth part identifies the gaps in literature, leading to the development of the study’s

questions and hypotheses, which are tested with empirical data collected through

questionnaires.

2. 2. Knowledge Management and its core processes

Jasphapara (2004, p. 63) defines knowledge management (KM) as “effective learning

processed in relation to exploration, exploitation and sharing of individual knowledge

(tacit and explicit) that use appropriate technology and cultural environment to enhance

an organization’s intellectual capital and performance.” KM describes the processes and

strategies of collecting, transferring, utilizing, and protecting knowledge that can create

and provide sustainable competitive advantage (Kululanga and McCaffer, 2001; Lin,

2007b). KM practice includes identifying and managing new and existing knowledge to

develop new opportunities (Jarrar, 2002). The critical factors of this process are creating a

learning process, disseminating knowledge, and measuring knowledge capital in relation

to the total assets of an organization (Argot, 1999; Bontis et al., 2010; Sveiby and Risling,

1986).

Every individual’s knowledge sharing contributes to the success of a firm’s KM (Apshvalka

and Wendorff, 2005). Knowledge types can be broadly classified into two: tacit (i.e.,

informal) and explicit (i.e., formal). Tacit knowledge is highly personal and implanted in an

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individual’s daily work practices (Nonaka, 1998, 2008), trust, and face-to-face interactions.

Informal structures also expedite tacit knowledge sharing between individuals (Koskinen

et al., 2003; Dholakia, 2002). By contrast, explicit knowledge is systematically and formally

stored in databases or libraries (Polanyi, 1966 cited in Nonaka, 1994) and manuals or

computer files (Aman, 2010; Ismail and Ashmiza, 2012). Tacit knowledge is difficult to

transmit because of its inherently instinctive and subjective nature (Richey and Klein,

2010).

Haldin-Herrgard (2000) point out that the diffusion of tacit knowledge is difficult through

modes such as lectures, textbooks, or manuals. This knowledge type is best transferred

through observations (Szulanzki, 1996; Argote et al., 2003). The type of knowledge under

consideration is essential in understanding to how such knowledge is shared. For example,

sharing explicit knowledge is easier via developmental and formal training than tacit

knowledge.

Polanyi (1996) argues that tacit knowledge is not a separate from knowledge and that

such a form of knowledge is critical in knowledge integration mechanisms. Some

researchers disagree with Polanyi and suggest that knowledge can be categorized into

tacit and explicit forms (Jasphapara, 2004; Mooradian, 2005). Dholakia et al. (2002) states

that explicit knowledge is easier to codify formally than tacit knowledge. Reportedly, 90%

of people’s knowledge is tacit knowledge (Wah, 1899; Lee, 2000). Swap et al. (2001) focus

on the sharing of tacit knowledge and suggested that it is perceived as a more critical form

than explicit knowledge. Smith (2001) highlights that tacit knowledge is vital in attracting

and retaining talented, loyal, and productive workforce. Huang et al. (2011) state that

sharing tacit knowledge frequently occurs in informal situations between individuals in

close relationships. Next, the formal and informal nature of knowledge sharing methods

(Smith, 2001) is discussed in the next section.

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Nonaka and Takeuchi (1995) proposed the socialization, externalization, combination, and

internalization (SECI) model, a framework for developing methods to convert tacit

knowledge into explicit knowledge and vice versa in a continuous and cyclical manner.

This model consists of four modes of knowledge transformation (See Figure 2.2 for

details). Socialization is about sharing experiences through informal or social interactions.

Externalization is when an individual gains knowledge through formal and codified forms

such as written manuals or through information technologies. Combination occurs when

explicit knowledge gets converted to codified or systematic sets of knowledge through a

range of sources. Internalization occurs when explicit knowledge is modified internally by

an individual, often involving interaction with aspects of the individual’s tacit knowledge

with the new explicit knowledge received.

Figure 2.2 The SECI model (Nonaka and Takeuchi, 1995, p. 80)

Managing such knowledge is crucial for developing strategic resources (Jones, 2003; Lee

and Yang, 2007b).

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2.2.1 Knowledge sharing processes and its impact on firm performance

Although knowledge is widely collected and held through individual transmissions

in a firm, knowledge sharing is an essential process of KM, as it is the flow and

application of knowledge rather than its stock that creates opportunities for

sustained competitive advantage for a firm. Eisenhardt and Santos (2002) find

that the systematic promotion of knowledge sharing implementation is critical for

successful implementation of KM. Hsu (2008) highlights that knowledge sharing

also supports innovation strategies. Knowledge sharing occurs through formal

and informal means. For example, structured and explicit forms of knowledge can

be transferred through formal knowledge sharing (Alavi et al., 2005; Leonard-

Barton, 1995; Zahra et al., 2006). Similarly, unstructured or tacit forms of

knowledge is collectively held by individuals and is transferred through informal

knowledge sharing mechanisms (Lave and Wenger, 1991; Nonaka and Konno,

1998; Orlikowski, 2002). Both these approaches are highly relevant in attracting

and retaining talented, loyal, and productive workforce (Smith, 2000).

To enhance knowledge-sharing performance and avoid repeating the same

mistakes, firms should share their learnings, experiences, information, and

knowledge by implementing KM strategies. Successful KM strategies can

determine a firm’s and long-term sustainable competitive advantage (Leonard-

Barton, 1995; Drucker et al., 1998; Hooff and Ridder, 2004). It has been widely

noted in the extant literature that knowledge sharing requires individual

employees engaging in behaviors that are conducive to knowledge sharing

(Ardichvili et al., 2003; Ipe, 2003), as it is nearly impossible to competently record

all knowledge (Bhatt, 2001; Horwitch and Armacost, 2002; Rooke and Clark,

2005). As noted in Witherspoon et al.’s (2013) meta-analytic review, individual

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employees’ attitudes and intentions are regarded as vital in their knowledge

sharing behaviours. Furthermore, informal approaches to knowledge sharing

relies extensively on a trust-based environment that can be collectively created

by an organisation’s employees, leaders and managers (Davison, 2013; Koskinen

et al., 2003). Knowledge as information possessed by individuals consists of

expertise, facts, judgements, and ideas relevant to the performance of

individuals, teams, and firms (Alavi and Leidner, 2001; Bartol and Srivastava,

2002). Tacit knowledge and competitive advantages can often be adversely

impacted when employees leave or retire (Reid, 2003; Sheehan et al., 2005;

Tsoukas, 1996). Knowledge sharing in organizations generally focuses on

communicating and transferring knowledge explicit forms of knowledge from

individual into tacit forms for its productive use. Individuals may also exchange

knowledge through discussions or social interactions to develop new knowledge

(Abudullah et al., 2009; Van den Hooff and De Leeuw van Weenen, 2004).

Based on the review of literature, it is apparent that knowledge sharing research

is grounded in theories of knowledge integration and creation (Alavi and Leidner,

2001; Grant, 1996; Nonaka and Toyama, 2003; Nonaka and Takeuchi, 1995;

Jasphapara, 2004). A number of studies have indicated that reasons affecting

knowledge sharing include reasons such as leadership, management, training for

workers, incentive system, and trust (Chua et al., 2004; Van den Hooff and

Hendrix, 2004; Wong and Aspinwall, 2005; Yang, 2007).

Nonaka and Takeuchi (1995) examined knowledge sharing processes and found

that knowledge creation can be enhanced by the proper attitude of people

towards knowledge sharing. Developing a knowledge sharing culture facilitates

knowledge generation, which helps firms to survive in today’s competitive

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environment. Thus, there is a need to consider organisational practices such as its

HRM practices that may facilitate in creating a culture that is conducive to

knowledge generation, sharing and integration into an organisation’s daily

productive routines.

Knowledge sharing has several benefits that have been identified in the

literature. For example, Alavi (1999) demonstrates that knowledge sharing

enables employees to contribute to knowledge application and innovation and

ultimately to a firm’s competitive advantage. Knowledge sharing between

employees and across teams allows the capitalization of knowledge-based

resources (Cabrera and Cabrera, 2005; Damodaran and Olphert, 2000; Davenport

and Prusak, 1998). However, it is not always easy to share knowledge. Ardichvili

et al. (2003, p. 70) explored knowledge sharing processes and confirmed that it

can be curtailed by the “fear of criticism” and “fear of misleading others”. The

perception of a virtual community of knowledge sharers actively motivates

individuals to share knowledge (Ardichvili, 2003; Chiu et al., 2006; Wenger et al.,

2002). Despite evidence that knowledge sharing positively contributes to

innovation, motivating people to share has been noted as a key challenge for

reasons outlined above (Ford and Chan, 2003). Appropriately implementing

knowledge sharing is therefore important for firms in a dynamic business

environment to succeed (Kedia, Harveston, and Triandis, 2002).

Firms that can generate and manage unique knowledge tend to create

sustainable and inimitable competitive advantages (Barney, 1991; Grant, 1991;

Lank, 1997). Sharing the best practices within an organization can also influence

the ability of the organization to create these advantages (Szulanski, 1996). The

value of knowledge can be expanded through appropriate knowledge sharing, as

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it enables improvements in work quality, problem-solving and decision-making

skills (Alavi and Leidner, 1999). By creating and sharing knowledge faster than

competitors, firms can develop competitive advantages every day (Gupta and

Govindarajan, 2000). Despite the acknowledged benefits, knowledge sharing still

remains one of the greatest challenges of KM as employees are often unwilling to

share their knowledge and expertise (Issa and Haddad, 2008). Mitchell (2003)

notes knowledge creation if often as a result of effective knowledge sharing and

that ineffective KM practices may adversely impact a firm’s competitive

advantage (Sarvay, 1999).

2.3 Research on Family-controlled businesses

In the literature on FCBs, there is a clear distinction between FCBs and non-FCBs

populations. Unlike non-FCB firms, FCBs are run and operated by its family

members. Sit and Wang (1898) found that a significant part of management

decision-making falls on families in small to medium-sized Chinese firms in Hong

Kong. In the present research, a FCBs are defined as a business in which the

majority of management stake lies in the hands of a family and its family

members are directly involved in the workings of the firm. Lansberg (1988)

highlights that by not carefully engaging in succession planning at various levels in

a FCB, the overall performance of the FCBs comprising of owners, family

members, and managers will be adversely affected. FCBs should be treated as a

system (Greenberg, 1977; Kantor and Lehr, 1975; Wertheim, 1973) that has

interdependencies and interrelationships between the key decision makers. Dyer

(1986) advocates that all families follow patterned roles as means of interacting

with the explicit and implicit rules that have been created over the years through

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their family culture. This section reviews the literature on FCBs to identify

concepts that are relevant to studying Chinese FCBs in the context of the HKCI.

Generally, the symbolic management of the members of FCBs and the culture in

such firms is largely shaped and pursued by family members of the FCB unit. The

wealth and knowledge thus created needs to be transferred on to the next

generation for making the business potentially sustainable across generations

(Chua et al., 1999; Molly et al., 2010). The features and cultural characteristics of

FCBs are defined by paternalistic values (Chirico and Nordqvist, 2010).

Turner (1980) found that 93% of factory workers and nearly 70% of employees in

Hong Kong trust the leaders and managers of FCBs. Nearly 70% of those workers

also agreed that there exists teamwork between management and workers.

Redding (1989) concurs with Turner (1980) and notes that managing family

interest is the top priority of FCBs because of “family obligations” as the FCB is

often viewed as a “family possession.” Chinese FCBs tend to recruit less

competent relatives compared to more capable professional managers because

of the need to care for family members is embedded in part of their family’s

obligations and culture. This approach does not always effectively deliver on the

business goals and performance.

Furthermore, in traditional Chinese culture, promotions are based on seniority

(i.e., age) rather than merit. Rewarding seniority conveys loyalty and

commitment (Redding, 1979, 1984). In Hong Kong, the new generation of young

executives also view seniority as an important factor for loyalty and status in

clothing businesses (Redding, 1984; Chiu et al., 2002). Through a sustained

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research program on the characteristics of typical Chinese-owned firms (Redding,

1979, 1984) summarized the following key characteristics:

1) centralization of power through the boss;

2) friendly relationships with suppliers and customers;

3) high flexibility;

4) minimal management control on individual performance;

5) quick decision-making;

6) limited reliance on logical analysis and rationality;

7) patronage systems; and

8) informal organization structure

Chinese FCBs in Hong Kong typically manage people using belief systems, such as

having non-rational forms of control and where feelings of senior management

are given greater priority (Redding, 1990, p. 42). Such a management style is

more autocratic than in the past (Redding & Richardson, 1986), though now it has

been gradually heading toward more of a decentralized approach. The

management system of FCBs is largely informal, loosely structured and based on

the interpretation of its managers and employers (Redding, 1979, 1984).

Carney (2005) and Sharma et al. (1997) state that Chinese FCBs focus on people,

highlighting the management of relationships. The level of organizational control

required at different stages in an organization’s life cycle varies. Successful

transitions of control are according to phases of expansion, management

succession, transitions of FCBs into public limited firms, or affected by changes in

the external environment. These factors affect control systems in Chinese FCBs.

Zuo (2002), further states that the Guanxi orientation in relation to Chinese

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culture focuses on developing harmonious relations with each other for

maintaining a strong identity of Chinese FCBs (Dholakia, 2002).

While adopting a transactional approach is essential in achieving control-oriented

outcomes (Howell & Avolio, 1993; Sameroff & Mackenzie, 2003), internal changes

can be modified for reducing transactional conditions, thereby resulting in a

demand for different degrees or emergence of a hybrid system if control in Hong

Kong. Such hybrid systems reflect aspects of both the Western and Chinese

culture to satisfy the social needs while at the same time maintaining the family

dominance of FCBs.

2.3.1 FCBs and knowledge sharing

Macneil (2001) proposes that the executives of FCBs must engage in

organizational learning process as knowledge sharing is becoming increasingly

relevant in organisations (Ardichvili et al., 2003; Hsu et al., 2007). Knowledge

sharing within FCBs can yield both positive and negative outcomes.

Benefits can only follow of there is a positive perception by senior managers, who

must demonstrate a behaviour of encouraging staff to undertake knowledge-

sharing for creating and maintaining a positive knowledge-sharing culture in

organizations. Carney (2005) suggests that FCBs can further enhance their

knowledge-sharing performance and motivate their staff by making appropriate

investments in their technological infrastructure. This is especially true if the

knowledge to be shared is explicit and codified in nature. The leadership style is

also noted as a critical factor in motivating staff to share knowledge effectively

(Sull and Wang, 2005).

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Sharing tacit knowledge need to face-to-face, unstructured, and personalized

exchanges (Orlikowski, 2002). This type of knowledge is not easy to express and

define; it is best transferred via informal forms of direct showing and common

practices between employees. Informal social interactions may share knowledge

by opportunities, which can help FCBs to build technological capabilities in

current running (Zahra, 2007). Although non-codified and tacit knowledge is

difficult to share, the strong relational ties that this creates in FCBs may provide a

powerful and sustained informal knowledge sharing mechanisms (Sirmon and

Hitt, 2003; Zahra, 2006). Participating in knowledge sharing by FCBs from early

stages helps family members develop deep firm-specific tacit knowledge. Such

knowledge is emphasized in relation to its centrality for a firm (Grant, 1996;

Cabrera-Suarez et al., 2001). In the context of this study, it is worth emphasizing

that Chinese cultural norms will tend to utilize more informal and personal means

for achieving the above outcomes of knowledge sharing (Burrows et al., 2005)

There are several shortcomings that most FCBs face. Despite the importance of

knowledge sharing, several characteristics of FCBs potentially inhibit the

knowledge sharing processes. Being closely held businesses that FCBs are, often

the most valuable information resides in an individual or a few closely associated

family members. Within-family rivalries also can make senior family members

reluctant to share knowledge with the successive generations (Lansberg, 1999).

Additionally, over a period of time family members may also lose interest in the

business or have no passion to teach their offsprings (Grote, 2003; Le Breton-

Miller et al., 2004). These inhibitions are usually caused by a paternalistic

approach, a cultural characteristic of FCBs (Chirico and Nordqvist, 2010). Some

FCBs tend to develop cultures that make their firms inflexible and resistant to

change (Hall et al., 2001).

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Family members may not usually possess the same level of entrepreneurial spirit

(Morck and Yeung, 2003), and this reason highlights the commitment for greater

levels and efficient practices of knowledge sharing (Cabrera-Suarex et al., 2001).

Rivalries among family members can complicate this sharing of knowledge

(Gomex-Mejia et al., 2001). Jealously, is another factor that is common happens

in family and even non-family members, and this factor is usually induced by the

ambition to have another person’s position in a firm. These are conflicts can stifle

communication (Grote, 2003) and limit the extent of knowledge sharing. Chinese

FCBs are characterized with a strong identity and an informal business setting,

often adopting a paternalistic leadership style. Informal situations are common in

FCBs and helps in fostering close relationships with managers and peers. The

presence of these factors may facilitate or mitigate the knowledge sharing

processes. Researchers argue that emotional involvement and use of private

language in FCBs enhances the communication between family members; this

distinctive approach explains the efficient sharing of knowledge in FCBs, which

often results in better outcomes as compared to non-FCBs (Chirico and Salvato,

2008; Chirico and Nordqvist, 2010).

2.4 AMO: The Performance Rubric

Several studies have focused on factors that impact high performance of an individual’s

performance, namely: their ability (A), motivation (M), and opportunity (O) or what has

been popularly noted as the AMO model (Blumberg and Pringle, 1982; Bailey, 1993).

Blumberg and Pringle (1982) introduced “opportunity” in the AMO framework for creating

a cooperative environment, one which encourages people to share their knowledge with

other employees. While motivation also influences opportunity and ability; a firm that

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generates a highly supportive climate for knowledge application and sharing may drive

employees toward further knowledge and skills development (Ryan and Deci, 2000).

The AMO model has been extensively used for understanding individual level differences

in performance in an organisational context (e.g., Boxall and Purcell, 2003; Waldman and

Spangler, 1989). Other studies offer a wide variety of contexts and situations leading to

high performance (Aguinis et al., 2015). For example, subsidiary performance can be

improved by leveraging firm-level expatriate competencies (Chang et al., 2012) and

Appelbaum et al. (2000) indicate that employee performance is the function of ability (A),

motivation (M), and opportunity (O) enhacing practices. Ability can be improved if the

selection or initial training of employees for advanced or job-specific skills and knowledge

is provided for by the organisation. Workers who are skilled and able then need to be

motivated to become efficient, often using a combination of some intrinsic and extrinsic

incentive systems, such as employment security, performance-related pay, internal

promotions, and training investments (Appelbaum et al., 2000). Finally, the willing and able

workers tend to perform better when they have the opportunity to apply their skills and

motivation to a given work context. Thus, working arrangements can provide employees

with the opportunity to influence the decision-making process of a firm and motivates

them to share their task-specific knowledge through an environment such as that of trust

(Appelbaum et al., 2000). The AMO model has since been adopted by many researchers to

study individual-level performance outcomes for various aspects of an individual’s

performance (Jiang et al., 2012; Wolters, 2014)

Many scholars have also advocated the adoption of the AMO model at organizational level

for analysis, particularly in areas of strategic decision making and human resources

management (Black and Boal, 1994; Lepak et al., 2012; Wu et al., 2004).

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In general terms, ability is considered an important factor in knowledge sharing because

the competence of an employee is a core requirement for high work performance. Ability

comprises of knowledge and skills of workers. Knowledge can be viewed as the intellectual

capital of individuals that can be applied to work tasks. Subramanian and Youndt (2005)

highlight the importance of skills for individual work performance and functional expertise

of employees. Researchers often measure abilities in terms of human capital and

educational levels. For example, Lepak et al. (2012) measured ability in terms of human

capital and training, whereas Coff (2002) states that human capital is a combination of an

employee’s knowledge, skills, and abilities. Overall, training is the key to ensuring that

employees have the requisite skills for completing various tasks in relation to the tasks they

need to perform. Becker (1964) claims that by investing in training that improves firm-

specific skills, productivity can be directly increased.

Motivation is the intensity, direction, and duration of employees’ effort toward work

activities for achieving high performance (Campbell et al., 1993). Jiang et al. (2013)

indicate that motivation reflects employees’ willingness to exert effort at work. For

knowledge sharing to work, employees must be motivated to voluntarily participate in

such activities. Motivation as we know can be intrinsic, extrinsic and must also be

mutually beneficial (Adler and Kwon, 2002). Payment and monetary rewards are strongly

linked to the AMO model as they are incentives that are part of overall payment systems

(Boxall et al., 2009; Purcell and Kinnie, 2007). Incentive systems also relate to group work

and collaboration (Alder and Kwon, 2002). Intrinsic motivation is related to the aspiration

to do something pleasant for the staff, and it provides a sense of organization, fulfilment,

and confidence that can drive employees toward the target (Huselid, 1995). Job

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satisfaction is a positive emotional state that also affects an individual’s appraisal of a job

experience or the actual job and their motivational levels (Locke, 1976).

Opportunity refers to an environment that enables employees to effectively apply their

skills and motivation to perform their tasks well (Jiang et al., 2012). Bowen and Lawler

(1992) advocate empowerment is a key resource to instill decision-making power in

employees to influence the firms’ direction and task performance through knowledge

sharing. Conversely, Wolter (2014) finds that the best way for employees to perform and

accomplish their tasks is to work independently and employees should be given the

opportunity to demonstrate their abilities by contributing to firm performance. Other

studies have found that trust, knowledge sharing, and communication can drive employee

motivation (De long, 1997; Ismail et al., 2007). Trust-based relationships lead to building

trust within teams (Black and Boal, (1994, p. 7) state that the performance outcomes of a

unit depend on “the interactions among the capacities of unit members, the motivation

present, and the unit’s physical and capital resources.” Boudreau and Ramstad (2002)

claim that employee skills, motivational elements, and value-creating conditions are

crucial for human resources to create organizational value. Although performance varies

across contexts, it is overall a function of ability, opportunity, and motivation (Boxall &

Purcell, 2003; Waldman & Spangler, 1989). Some researchers disagree with the

mechanisms through which these factors operate (Siemsen et al., 2008) and have

suggested that these elements should be grouped differently across various performance

contexts. In most job settings, employees must possess minimal levels of motivation and

ability and be given opportunities to contribute to firm performance (Schwab and

Cummings, 1973; Siemsen et al., 2008).

Thus, strengthening training, motivation, and trust is the key to building and developing

knowledge within an organization. Investment in training and development enhances

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individuals’ human capital and firms’ absorptive capacity (Jerez-Gomez et al., 2004).

Rewarding new skills and knowledge creation motivates individuals to experiment with

novel ideas, leading to new knowledge creation (Jerez-Gomez et al., 2005b; Lawler et al.,

2001). Teams and cross-functional collaborations have been found to promote knowledge

sharing (Appelbaum and Gallagher, 2000; Lepak et al., 2007), which supports the

exchange of knowledge at a group and organizational level (Garvin, 1993; Goh and Ryan,

2002). Opportunities to collaborate with others in small groups make jobs inherently

satisfying to employees, especially when they can willingly choose to participate in such

environments (Wood and Wall, 2007). Cooperative and collaborative work environments

may also increase the ability by allowing knowledge sharing among employees (Kwon and

Alder, 2002). Teamwork can support all the three factors of the AMO model. Autonomous

work teams create opportunities for participation and team-based organization also

fosters motivation among team members (Kwon and Alder, 2002). Having explored the

literature on AMO factors and its impact on performance and knowledge sharing in

general, the following section reviews the literature that focuses on the specific impacts of

each of the AMO factors on knowledge sharing. While there are several mechanisms and

HRM practices for enhancing ability, motivation and opportunity, this study reviews the

key HRM practices that will then be included in the study’s guiding framework for testing

and analysis.

Overall, employee abilities, motivation, and the opportunity to perform to their potential

can lead to good performance outcomes (Becker and Huselid, 1998; Delery and Shaw,

2001, Guest, 1997; Jiang et al., 2012) at both employee and organizational level. Combs et

al. (2006) argue that a high performance work systems (HPWS) significantly affects firms

more than employees’ individual capacity. In their bundle of (HPWS), Combs et al. noted

commitment to employee training investment, effective incentive systems, successful

work system, and a participative management structure was found to provide employees

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with opportunities to contribute. Shih et al. (2006) also found training, motivation, and

involvement as leading contributory factors for performance improvement. Training

programs, job empowerment, and incentive arrangements can boost firm performance by

enhancing motivation (Shih et al., 2006). Sustainable competitive advantages of firms

embedded in employee behaviour are hardly inimitable (Lade and Wilson, 1994), and firms

can effectively nurture the desired employee skills for improved performance (Shih et al.,

2006). The following section provides a detailed review of literature connecting knowledge

sharing with ability, motivation and opportunity factors.

2.5 FCBs and AMO model

2.5.1 Ability and knowledge sharing

Ability is the application of a set of related competences for completing one’s work. For

example, the effectiveness of line managers may decline because of inadequate training

(Whittaker and Marchington, 2003; Boxall and Purcell, 2011). Bailey (1993), following

Applebaum et al. (2000) conceptualized the AMO model as a high performance work

system. Adopting a systems view of HRM system is a useful way for analyzing the impacts

of employees’ abilities (A) motivation (M) and opportunities (O) to partake in productive

organisational activities (Khodabakhshi and Abbasi, 2015).

Training is essential for developing employee ability, as it increases skills, expertise, and

awareness (Renwick and Redman, 2013). Lack of training affects employee performance

because in the absence of expert knowledge (Hall and Torrington, 1998; Lowe, 1992)

employees are likely to perform sub-optimally. Lack of experience and knowledge on

information needed in performing responsibilities results in limited human management

skills (Grimshaw et al., 1997).

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Additionally, a firm need to “recognize, learn and also utilize knowledge from the

surroundings” (Cohen and Levinthal, 1989, p. 13). A firm can utilize knowledge from

external sources, depending on the ability of the firm to tap into such knowledge and have

in place mechanisms that support knowledge transfer across individuals, functions, and

departments. Educational levels alone do not significantly influence the ability to exploit

inter- and intra-industry knowledge (Schmidit, 2010), firms should be adept in integrating

such knowledge through a range of HRM and management practices (Malik & Nilakant,

2015).

Training also enhances the self-efficacy levels of managers and peers through successful

experience and coaching (Bandura, 1997). Stakeholders then become confident to share

their abilities and knowledge with others. The critical roles of different types of training

vary. Team building training increases the levels of structural and relational social capital,

thus encouraging knowledge-sharing behaviours (Cabrera and Cabrera, 2005; Currie and

Kerrin, 2003). Cross-training enhances interactions among employees and awareness in

different jobs and departments (Cabrera, 2005: Cabrera et al., 2006). Socialization

programs help share norms and identity with others, through which trust can be built

(Kang et al., 2003). Many studies found that training is a tool that helps managers and

peers to use organisational systems effectively with minimal cost (Cabrera and Cabrera,

2002; Cabrera, 2005). Training also encourages knowledge sharing behaviours (Hislop,

2003; Oldham, 2003; Zarraga and Bonache, 2003), enhancing the knowledge, abilities,

skills, and positive attitude of stakeholders to develop sustainable competitive advantages

of firms (Noe, 2010; Vodde, 2012).

Motivation to attend training also affects the attitude towards training and its

effectiveness (Machin and Treloar, 2004; Noe, 2010). The AMO model does not represent

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either a fully interactive or fully additive effect of this, however, there is research that

points to effective transfer of training. Central to the training transfer literature, among

other factors is the importance of combination of opportunity and motivational factors

that may exert an additive effect for ability; however, each part does not exert an effect

on its own. Opportunity or motivation may add to the information employees need to

perform their responsibilities and may assist employees with limited HRM skills (Grimshaw

et al., 1997). Systematic and continuous approaches to training are therefore necessary in

organizations (Cunningham and Hyman, 1999; McGovern, 1999). Overall, the focus on

employee training is a core HRM practice in the AMO paradigm that is likely to have an

impact on knowledge sharing performance.

2.5.2 Motivation and knowledge sharing

While employee training is critical in developing employees’ ability, the knowledge thus

developed needs to be shared through appropriate employee motivational mechanisms.

Organizational commitment can motivate employees to share their own knowledge

(Hislop, 2003).

Central to the AMO paradigm is “eliciting discretionary efforts from workers,” which is

often regarded as “eliciting staffs’ knowledge.” (Salis and Williams, 2010, p. 6). These

efforts are usually viewed as combining resources to attain competitive benefits. Given

the widespread use of knowledge in companies, a lack of attention to the knowledge

construct may lead to aggravated situations (Salis and Williams, 2010).

Incentive systems and employment security may provide employees with the necessary

motivation to share knowledge within the organisation. These elements indirectly impact

employees to share their knowledge with others. Implicit and explicit knowledge may be

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combined to carry out changes in the workplace and undertake problem solving in teams

or groups for productivity advantages, which may accrue from the exchange of both

knowledge types (Salis and Williams, 2010).

Incentive systems inspire employees to share their knowledge within the

organization (Govindarajan and Gupta, 2006; Lin, 2014; Aspinwall and Wong,

2005). An important element of a successful incentive system is encouraging

employees to exchange knowledge. Silverstein (2010) demonstrated that

recompense may be in the form of intangible rewards and financial inducements,

such as job satisfaction. Employees often share their knowledge to be

recompensed. Szulanzki (1996) recommends that people are unwilling to share

their knowledge because of insufficient motivation along with the exclusive

nature of recompense. Therefore, firms always adopt constructive tools of

incentive systems to advance the readiness of knowledge sharing within the

organization.

Davenport and Prusak (1988) asserted that knowledge sharing should be

encouraged and rewarded based on the structural performance requirements of

individuals in firms (VonKortzfleish and Mergel, 2002, p. 246). Firms create a

compensation system with either monetary or non-monetary incentives to

reward such behaviour (Davenport and Prusak, 1998; Hargadon, 1998). Such

incentives and motivational rewards can satisfy the extrinsic and intrinsic needs

of employees (VonKortzfleisch and Mergel, 2002). Formal and informal

compensation approaches vary from extrinsic (e.g., increased salary, promotion,

job security, bonus, and career development) to intrinsic incentives (e.g., praise

and public recognition) (Kankanhalli et al., 2005; Choi et al., 2008). Mergel and

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VonKortzfleisch (2002) found that knowledge-intensive organizations tend to

focus on cultural changes that generate motivation for knowledge sharing.

Employees often respond to external inducements easily than to intrinsic

inducements (Bartol and Srivastava, 2002). However, as Bock, Lee, Kim, and

Zmud (2005) assert, external inducements may negatively affect the intention

of employees toward knowledge sharing. Firms need to create long-term

incentive systems to allow continuous knowledge sharing (Davenport and

Prusak, 1998; Choi and Cheng, 2005) and prevent employees from misusing

the compensation systems (Chong, 2006). Companies can also recompense

employees for participating in knowledge exchange aimed at future

development and training (Gumbley, 1998).

Although some firms may be doubtful about the effectiveness of a recognition and

incentive system for driving workers to share knowledge, affiliating reward and

recognition with knowledge sharing can at least highlight the significance of knowledge

sharing to all employees (McDermott and O'Dell, 2001). Wasko and Faraj (2000) argue

that physical inducements may motivate knowledge storing and contentious actions may

decrease knowledge flows among employees.

Significant changes in incentive systems are required to encourage employees

to share their knowledge (Bartol and Srivastava, 2002). Changes in incentive

systems often result in changes in an organization’s culture (Harman and

Brelade, 2000). Hargadon (1998, p. 225) recommends companies to adopt a

common culture that “shows the readiness of members to search for others

varying knowledge and to share their own; it can best be condensed as an

attitude of wisdom.”

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Rewarding knowledge sharing is critical for motivating individuals to transfer knowledge,

especially in Western management systems (McDermott and O’Dell, 2011). In Chinese

culture and FCBs, knowledge is managed informally, and knowledge sharing relies on trust

and close relationships among stakeholders (Burrows et al., 2005). Overall, the presence of

incentive systems as core HRM practices in the AMO paradigm is likely to have an impact

on knowledge sharing.

2.5.3 Opportunity and knowledge sharing

Workplaces can attain trust and share knowledge by creating social networks

comprising of individuals with strong bonds and corresponding levels of trust

(Lepak & Snell, 2007). Tsoukas (1996) found that a firm is a “distributed

knowledge system,” in which knowledge is dispersed individually and situated in

the social interactions of employees in different parts of the organisation.

Trust is characterized as the eagerness of a party to be accessible to the actions

of another party situated on the anticipation that the other party may perform a

particular action important to the trust or, regardless of the ability to control and

monitor the other party (Davis & Schoorman, 1995). Trust is developed through

meaningful and recurrent communications, where individuals learn to be free,

comfortable, and open in sharing individual insights and concerns. Further, trust

can be fostered where ideas and assumptions can be challenged without the risk

or fear of consequence, and where various opinions are prioritized over

compliance and commonality (Holton, 2001). To enable knowledge sharing, trust

should exist in three dimensions, namely, capability, honesty, and kindness

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(Usoro et al., 2007). Although it may take time, high levels of empathy and trust

among individuals is key to an effectual learning climate (Bogenrieder and

Nooteboom, 2004).

Buckley and Strange (2011) assert that trust plays an important role in conflict

mitigation, constructive knowledge sharing, and cooperative knowledge sharing

behaviours in firms. Zaheer and Zaheer (2006) discover that trust needs

institutional and cultural support, but their finding varies in three countries

(Japanese, Japanses-Americans, and Americans).

Trust involves having reciprocal faith in others (Kreitner and Kinicki, 1992).

Knowledge sharing cannot be performed with only honest trust. Nahapiet and

Ghoshal (1998) regard trust as an essential factor of social capital that is

immersed in human relationship networks. Zhang and Cohen (2007) contend that

employees need capacity and time for meeting and working closely together for

developing trust and mutual understanding.

Although trust is not identified as an individual element that affects the readiness to share

knowledge (Ding et al., 2007), it trust can increase compassion among employees (Cross,

Abrams, Lesser, and Levin, 2003) and their readiness to collaborate (Tyler and Kramer,

1996). Davenport and Prusak (1998) assert that trust must be conspicuous and alluring and

must emanate from the top management. When employees recognize the presence of high

trust in their relationship, they are likely to be interested in participating in knowledge

interactions and social exchange (Levin and Cross, 2004). Knowledge sharing without trust

is impossible because employees refuse to share their knowledge with those who they do

not trust (Ellis, 2001; Van Wijk et al., 2008). Knowledge donators only share knowledge

when they trust the knowledge collectors (Issa and Haddad, 2008). Knowledge donators

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must trust that their shared knowledge will be used appropriately, and knowledge

collectors should believe that their collected knowledge is the best available knowledge

(Buckman, 1998). Overall, by focusing on creating trust as a core HRM practice in the AMO

paradigm, trust is likely to have an impact on knowledge sharing performance. The

following section reviews the relationship of FCBs with the AMO in general and then

examines the specific impacts of AMO factors in the context of FCBs. The above studies

offer adequate support for employing the AMO paradigm for this study.

2.6 FCBs and AMO model

Teamwork, leadership, and incentives are contextual factors influencing creativity

(Shalley et al., 2004). The AMO model is developed for analysing high

performance of employees in an organisational context (Delery and Shaw, 2001).

Considering its critical role in sustaining participatory innovations, leadership can

build trust and personal relationships, especially in FCBs (Chrisman, 2007; Zahra,

2004). Leadership from senior managers can be viewed as constructive in driving

key changes. Management determination changes the organizational cultures to

match the new ways of working in a way that managers and employees are

accepting of change (Cox, 2013). Leadership is also critical in facilitating

connections at all levels of a company; right form the strategic issues to daily

operational matters leaders must ensure that employees are briefed and

consulted about the changes in FCBs. Leaders should share knowledge on work

performance openly with workers to demonstrate business situations. If such an

approach is evident at a workplace, employees may be willing to accept changes

to their terms and conditions even in adverse financial circumstances (Cox, 2013).

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Firoz and Chowhury (2013) argue that strategic leadership can ensure a profitable

and high performance work strategy by incorporating AMO approaches in a firm’s

architecture of work practices. Using such an approach, future leaders can be

trained and initiatives can be developed to bring about the highest levels of

organizational efficiency. Organizations can also link their compensation

packages successfully with performance management systems and keep their

employees motivated. Employees are entitled to receive competitive salary

packages inclusive of attractive bonus, insurance facilities and health care, paid

leave, loans, incentives, disability benefits, and opportunities for career

progression (Firoz and Chowdhury, 2013).

2.6.1 FCBs and AMO

Development and training plays a role in assuring development of skill levels for

performing key roles and tasks related to a job and involvement in various teams.

High-performing organizations tend to draw out the skills of their employees and

encourage employees to perform organizational goals (Belanger et al., 2002). By

moderating the relationship between HR practices that enhance the

opportunities of employees and organizational citizenship behaviours in FCBs, the

effect on environment increases. (Khodabakhshi &, 2015; Tzafrir, 2005).

Knowledge sharing is a series of actions through which people exchange their

knowledge. Individual knowledge is converted into organizational knowledge,

and the opportunity to practice and learn new knowledge, experience and skills is

enabled through knowledge sharing (Kogut and Zander, 1996; Hughes, 2005).

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According to knowledge-based theories (Hsu et al, 2007; Renzl, 2008; Mooradian

et al., 2006) social community has have the skill to create and transfer knowledge

with efficiency and high speed (Fukuyama, 1995). Such theories consider that

creating and transferring knowledge requires positive relationship among

organisational members. Therefore, social capital is needed in the social

networks within companies and can be assumed to be an essential asset in

maximizing organizational advantage (Lesser, 2000).

2.7 Research gap, key questions and hypotheses development

2.7.1 Research Gap

Overall, based on the review above, this thesis argues that knowledge sharing is driven by

three key enablers, namely, ability, motivation, and opportunity (Becker and Huselid,

1998; Delery and Shaw, 2001; Guest, 1997, Shih et al., 2006) and the moderating effect of

FCBs (Goh et al., 2012). Although extant literature on the practice of knowledge sharing in

business exists, studies on FCBs in the clothing industry in Hong Kong are lacking. Zahra et

al. (2007) conducted a similar empirical study in the US about the FCBs as a moderating

factor in knowledge sharing and technological capabilities, but they focused on the

relationship between the types of formal and informal knowledge and that technological

capabilities are moderated by FCBs. An in-depth study on how the critical AMO factors

(training, incentive system, and trust) influence the performance of knowledge sharing is

still lacking and needs exploration for reasons outlined earlier in this chapter.

From the above review of literature on knowledge sharing, the following research gaps have

been identified.

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Lack of research focusing on AMO factors in context-specific knowledge sharing

The fundamental idea of formal and informal knowledge sharing is that context-specific-

behaviour of leaders, managers and organisational culture is critical in understanding

knowledge sharing (Augier et al., 2001; Ford and Staples, 2010; Nonaka et al., 2000). Further,

FCBs possess a distinctive characteristic that allows it to create a unique cultural

environment; therefore, intensive research is needed to explore knowledge sharing in FCBs.

Lack of knowledge sharing studies in FCBs using the AMO model

With the growing importance of research on FCBs (Williamson, 1999; Mikado, 2003), its

relationship with knowledge sharing needs further examination (Lorenzen and Mahnke,

2002; Miller and Miller, 2005). Furthermore, FCBs in the HK clothing industry have not

been analysed in existing studies on the topic. This is surprising given the major

contribution HKCI makes to the nation’s GDP (HKTDC, 2016). Given that majority of the

clothing manufacturers in Hong Kong are FCBs (HKTDC, 2016), they also possess extensive

experiential knowledge about the products and materials sourcing. If there is little sharing

of knowledge between generations, then the increasing concern of the declining

performance of exports in HK’s clothing industry is likely to get even worse. In view of the

above, this study will examine the effects of AMO model on knowledge sharing and

analyse any moderating effects of FCBs.

Studies on the AMO model as applied to the investigation of management and leadership

is rather limited. Rutherford et al. (2004) point out that the leadership style of FCBs is a

critical success factor and is receiving increasing attention within the organization studies

literature. The AMO model could thus be explored in the context of HKCI, especially in

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relation to the role of leaders and managers in FCBs have in strengthening knowledge

sharing. FCBs tend to have a specific type of leadership style and may moderate

knowledge sharing capability by identifying the knowledge requirements of the chosen

strategies and creating the ideal conditions for the development and exploitation of such

knowledge.

Different dimensions of learning capability are considered vital in knowledge transfer and

sharing, by creating a culture of experimenting

With the appropriate training and incentive systems, teamwork that is built on trust, and

leadership style that encourages knowledge sharing and open-mindedness (Goh et al.,

2012). Jiang et al. (2012) assert that the underlying AMO factors act in a synergistic

manner (Becker and Huselid, 1998; Delery and Shaw, 2001; Guest, 1997) to obtain desired

employee and firm performance. Shih et al. (2006) identified training, employee

involvement, and motivation as key contributing factors for knowledge sharing. Exploring

the role of FCBs in knowledge sharing practices is interesting as FCBs can understand how

the AMO model can be applied for developing strong knowledge sharing capacity for

creating sustainable competitive advantages for firms operating in the clothing industry in

Hong Kong. The findings can stimulate further empirical studies in different industries in

Hong Kong and other Asian nations that have FCBs operating in industries such as

electronic, toys, and watches. To this end, this research focuses on answering the

following research questions.

2.7.2 Research Questions

1. Does ability (training workers), motivation (providing incentive systems),

opportunity (creating an environment of trust) have a significant effect on

knowledge sharing in the HKCI?

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2. What are the relationships between FCBs, AMO factors and knowledge sharing in

the HKCI firms?

Therefore, based on the above research questions, the following hypotheses will be tested

in this study:

Hypothesis H1.1:

In the HKCI, training for workers is positively related to knowledge sharing.

Hypothesis: H1.2:

In the HKCI, incentive systems are positively related to knowledge sharing.

Hypothesis H1.3

In the HKCI, trust is positively related to knowledge sharing.

Hypothesis H2.1:

In the HKCI, FCBs act as a moderating factor in the relationship between training for

workers and knowledge sharing.

Hypothesis H2.2:

In the HKCI, FCBs act as a moderating factor in the relationship between the incentive

systems and knowledge sharing.

Hypothesis H2.3:

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In the HKCI, FCBs act as a moderating factor in the relationship between trust and

knowledge sharing.

2.8 Chapter Summary

This chapter reviewed the extant literature on the various factors known to have an

impact on knowledge sharing and proposes a preliminary guiding framework for analysing

the study’s research questions and hypothesized relationships. The chapter also outlines

the context for the study. The literature review also identifies the antecedents of

knowledge sharing and the potential role of FCBs as a moderator between AMO factors

and knowledge sharing.

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Chapter 3

Research Design and Methodology

3.1 Introduction

This chapter presents details of the research methodology employed in this study. This

chapter has five sections and begins by highlighting the research questions based on the

review of literature undertaken in the previous chapter. More specifically, it reviewed how

various factors affect the implementation of knowledge sharing. This review informed the

development of the study’s research questions and hypotheses for further investigation. In

the second section, an outline of the research process is followed by descriptions of

quantitative approaches and analytic techniques employed for measuring and collecting the

data. The section also describes the rationale and justification for the use of the chosen

method–survey design–in answering the study’s research questions. The third section

focuses on questionnaire design and the measurement of key constructs. Section four

explains the sampling and data collection procedures employed for this study. This is

followed by a consideration of any ethical issues that may be involved. Lastly, the fifth

section provides details of the analytic procedures employed in this study. These include,

for example, employing Pearson’s product moment correlation, factor analysis, and

multiple regression analysis using Process Macro in SPSS were used to test the study’s

hypotheses. The use of a seven-point Likert scale (1= Strongly disagree; 2= Disagree; 3=

Moderately disagree; 4= Neither agree nor disagree; 5= Moderately agree; 6= Agree; 7=

Strongly agree) for consistent measurement of each item of the construct. Additionally,

demographic data, such as number of staff employed by the firms, management position,

FCBs performance, and businesses category, were also included in the survey

questionnaire. The chapter concludes with a brief summary.

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Methodological overview

All research methods are based on the underlying assumptions of testing validity and

reliability of the research (Myers, 1997). An illustrative outline of Chapter 3 is shown below

in Figure 3.1.

Figure 3.1. An outline of Chapter 3

3.2 Research Process: Philosophy and paradigms

Employing a scientific approach to a research problem can enable a researcher to

objectively conduct the research. For this reason, the researcher has chosen a research

philosophy and paradigm that supports the researcher’s paradigmatic stance. A paradigm

refers to “a set of basic beliefs (or metaphysics) that deals with the ultimate or first

principles. It represents a worldview that defines, for its holder, the nature of the world,

the individual’s place in it, and the range of possible relationships to that world and its

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parts” (Guba and Lincoln, 1994, p. 107). A paradigm also refers to a set of philosophical

assumptions that each researcher has and includes approaches such as realism, positivism,

constructivism, and critical theory (Healy and Perry, 2000). For example, a researcher may

choose between positivism and interpretivism as his/her research paradigm; and both are

commonly used as research frameworks (Neuman, 2000). Positivist approach rely on

deduction whereas interpretivism involves induction. Irrespective of the paradigmatic

choices, the limitations of each research approach must be truly presented through the

application of high ethical standards before the research is conducted (Cooper and

Schindler, 2001).

3.2.1 Positivist research approaches

It is important that the researcher clearly states the epistemological and ontological

position employed in her research. Epistemology is defined as “what is regarded as

acceptable knowledge in a discipline” (Bryman, 2008, p. 13). Positivism belongs to the

epistemological belief that social sciences are modelled on natural science approaches, in

which theories are tested by adopting quantifiable measurements and deductive methods.

“[It] begins with a theoretical proposition and then moves towards concrete empirical

evidence” (Cavana et al., 2001, p.35). An epistemological foundation relies on the

preference of relevant research methods (Bryman, 1984; Drisko, 1997). Positivism attempts

to understand the principles of natural scientific research by testing theories

experimentally, in order to determine whether those theories represent reality (Guba and

Lincoln 1994; Kolakowsk, 1993; Perry, Riege et al. 1999).

Meanwhile, ontology is defined as “the nature of social entities” (Bryman, 2008, p. 18).

Different views and perceptions can be produced from quantitative and qualitative

research, which are based on ontological foundations. As a philosophy, positivism adheres

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to the descriptive method, which assumes that the nature of reality is objectively gained via

a quantifiable observation by conducting statistical analysis. In fact, a positivist paradigm is

independent and aims to remain purely objective. The positivist paradigm employs a

quantitative mode of inquiry to test the hypothesis, which posits that social reality has an

objective ontological structure (Morgan and Smircich, 1980; Draper, 2004).

Positivism is often associated with quantitative analysis methods, such as surveys, statistics,

and experimental designs. The advantages of positivist research include its ability to cover

a wide range of situations; however, it cannot be used to gain in-depth insights into issues

such as human emotions, feelings, and thoughts.

3.2.2 Quantitative Research

Quantitative research is good at dealing with a wide range of variables involving large

numbers of respondents. Furthermore, it is well suited for defining the variables to be

studied and tested through hypothesis generation and prior theories. Such methods are not

only ideal for identifying causalities but also for looking at the significance of findings.

“Reliability and validity are tools of an essentially positivist epistemology” (Watling, as cited

in Winter, 2000, p. 7). The above approach is also high in delivering reliability and validity

of a research (Bryman, 2008; Karami et al., 2006).

Researchers who utilize quantitative or positivism research use quantitative measures and

experimental methods to examine hypothetical generalizations (Hoepfl, 1997) and analyse

causal relationships between variables (Hoepfl, 1997; Denzin and Lincol, 1998).

Quantitative research permits the researchers to accommodate them to be study with the

problem or concept, and develop hypotheses to be tested.

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Despite the several advantages noted above, quantitative researchers often fail to

distinguish between the elements of human and social institutions from the nature of

reality (Schutz 1962) as such methodologies only generate quantitative results and reduces

information into simple numbers in controlled situations. Unfortunately, such simple

numbers are insufficient in explaining the meaning of human relations and behaviours. The

measurement process may thus provide a spurious sense of accuracy to a proposed

hypothesis. Cross-sectional quantitative research conducted within each sample at a given

points unable to track the individual attitudes and values change over time (David de Vaus

2001, Bryman 2012). Quantitative research also lacks qualitative richness and cannot

explain human-emotions (Skiner et al., 2000) and social problems (Bogdan and Biklen,

1998). The interpretivist paradigm and qualitative research methods are commonly used

for other research needs. This is briefly discussed in the next section.

3.2.3 Justification for a positivist and quantitative methodology

Numerous reasons can be noted for justifying this study’s choice of a positivist approach.

First, the research can be replicated using the AMO model to generate testable hypotheses.

The state of prior studies and theories is mature for allowing the replication logic. The

positivist paradigm has relative strengths as it has established processes to illustrate

replication, generalization, causality, objectivity, and implement scientific measurement,

thus meeting the research objectives. Second, quantitative research analyses the trends

and causes behind a phenomenon. In this case, a deductive quantitative approach is the

best methodology that can be used to achieve results by scientific measurements, which

includes concepts of reliability and validity. These concepts will be discussed later in the

section on measurement and scaling.

Third, the conceptual framework and hypotheses stated in earlier research (Zahra et al.,

2007), is relevant for carrying out a quantitative design for the proposed research of HKCI

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firms. Fourth, this choice is informed by the researcher’s comfort with the quantitative

paradigm in terms of her epistemological, ontological, and methodological assumptions.

Fourth, the focus of this research is on developing an existing theory through theory testing

(Sarantakos, 1998). Fifth, through the scientific measurement of the key variables of the

Ability, Motivation, and Opportunity (AMO) model (Salis & Williams, 2010) allows for

further replication. Thus, overall, the research design of the current study is based on

established a positivist set of assumptions.

3.3 Research design

Selecting an appropriate research design is important in testing a theoretical framework as

well as for collecting and analysing the data. This quantitative study yields data that can was

further analysed, for example, in terms of the details of the respondents’ firm

characteristics of FCBs in the sample to highlight the meanings derived from the survey

data, using reliable and validated measures, for making numerical interpretations conducts

analysis through statistical methods (Healey and Rawlinson, 1994; Saunders, Lewis, and

Thorn hill, 2009).

An experimental research design incorporates controlled testing of the causes and effects

of the independent and dependent variables (Creswell, 2003). Experimental designs often

have comparison groups and attempt to make groups as similar as possible except in

relation to experimental interventions. Given that the current study is about predictability

of associations between individual factors with knowledge-sharing processes, an

experimental research approach is appropriate for the research objectives of this study. An

experimental research approach also helps eliminate the influence of other variables so that

the effect of the intervention can be clearly seen. However, the rigor of experimental

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designs varies depending on the contexts within which the experiment is conducted (De

Vaus and de Vaux 2001).

3.4 Research question and hypothesis development

3.4.1 Research question

Informed by review of extant literature, a comprehensive theoretical framework was

developed (Figure 3.2.1) which incorporates aspects of the AMO model and tests its

relationship with knowledge sharing in FCBs within the context of HKCI. This framework

incorporates three main relationships and five key constructs, namely: ability (training for

workers), motivation (incentive systems), and trust (opportunity), knowledge sharing and

FCBs. These relationships form the basis of the study’s key research questions.

Q1 Does ability (training for workers), motivation (providing incentive systems), and

opportunity (creating an environment of trust) have a significant effect on knowledge

sharing in the HKCI firms?

RQ2: What is the relationships between FCBs, AMO factors and knowledge sharing in

the HKCI firms?

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Figure 3.4.1 Framework with research questions

The development of the research questions and its linkages with the literature is

summarised in Table 3.4 below

Table 3.4: Questionnaire Road Map

Research Question Questionnaire Variables in the study

References from the literature

Q1 Ability (IV) Ability (Training for Workers) Wong and Aspinwall (2005)

Q1 Motivation (IV)

Motivation (Incentive Systems) for knowledge sharing

Wong and Aspinwall (2005)

Q1 Opportunity (IV) Opportunity (Trust) for Knowledge Sharing Mooradian (2006)

Q2 Knowledge Sharing (DV)

Effectiveness of Knowledge Sharing Zahra (2007)

Q2 Family-controlled businesses (M)

Ownership and characteristics of a firm Chua et al., (2004)

Legend: IV= Independent variable; DV dependent variable; M= Moderating variable

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3.4.2 Hypothesis development

Based on the above research questions, six hypotheses were developed as per details

below. As this thesis explores the concept of knowledge sharing and posits that its

relationship with the AMO factors is likely to be more positive in FCBs than in Non-FCBs

(Chua et al., 2004; Wong and Aspinwall, 2005; Mooradian, 2006; Zahra, 2007; Salis,

2010), these assumptions become a source of inspiration for the study’s research

questions and its associated hypotheses as follows (See also Figure 3.5 below):

RQ1: Does ability (training for workers), motivation (providing incentive systems), and

opportunity (creating an environment of trust) have a significant effect on knowledge

sharing in the HKCI?

To answer this question, the following hypotheses were developed.

H1.1: In the HKCI, Training for Workers is positively related to Knowledge Sharing.

H1.2: In the HKCI, Incentive Systems are positively related to Knowledge Sharing.

H1.3: In the HKCI, Trust is positively related to Knowledge Sharing.

Zahra et al. (2007) suggest that FCBs are better at implementing knowledge sharing

compared with Non-FCBs. This is because they foster an environment that motivates

employees to develop and enhance their technological knowledge through the firm’s daily

management practices. FCBs also complement their knowledge by providing

opportunities to share and transfer knowledge across generations. For example, Salvato

(2008) advocates that knowledge sharing in FCBs influences motivation, organizational

commitment, and social interactions within these firms. An FCB has the flexibility to

respond and react to volatile contexts of business, particularly when the formation and

rigidity, which is usually found within bureaucratic in Non-FCBs, interferes with the

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practice of knowledge sharing among employees (Ding, Zhang, and Zhang, 2008; Miller

and Miller, 2005). Practitioners and scholars interested in FCBs have explored new

knowledge and insights into the causal processes that underlie in these firms (Lewin,

1940). Many researchers have focused on the concept that FCBs have an impact on

knowledge sharing (Sharma., 2004; Zahra. 2004; Zellweger et al., 2010). Knowledge

development helps create conceptual frameworks that stimulate our understanding of the

phenomenon under study (Sutton and Staw, 1995). This process leads to the study’s next

research question and its associated hypotheses stated below.

RQ2: What are the relationships between FCBs, AMO factors and knowledge sharing in

the HKCI firms?

More specifically, these research questions attempt to observe the differences in the

impacts of FCBs with the factors in the AMO model (training for workers, motivation,

trust, and knowledge sharing). To answer this question, the following hypotheses were

developed.

H2.1: In the HKCI, FCBs act as a moderating factor in the relationship between

ability (training for workers) and knowledge sharing.

H2.2: In the HKCI, FCBs act as a moderating factor in the relationship between motivation

(incentive systems) and knowledge sharing.

H2.3: In the HKCI, FCBs act as a moderating factor in the relationship between opportunity

(trust) and knowledge sharing.

3.5 Conceptual framework of the research

Based on the above review and the study’s research questions, the following conceptual

framework has been developed for this study (See Figure 3.5 below).

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Figure 3.5: Conceptual Framework

As such, five constructs (FCBs, training for workers (A), incentive systems (M), trust (O),

and knowledge sharing) are included in the above model to allow for an analysis of the

hypothesized relationships and estimating the direct and indirect effects.

3.5.1 Dependent variable

Consistent with model of knowledge sharing proposed by Zahra et al. (2006), similar

analytical procedures were applied to assess the effectiveness of the

implementation of knowledge sharing in FCBs. The two perspectives regarding how

knowledge is collected, stored and shared within a firm is considered, through the

formal and informal aspects of knowledge sharing (Table 3.5.1 for details).

As noted earlier in Chapter 2, formal (and explicit) knowledge is easier to collect and

transfer (Alavi et al., 2005, 2006: Leonard–Barton, 1995), whereas informal (and tacit)

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knowledge is difficult to share (Lave, 1993; Lave and Wenger, 1991; Nonaka and Konno,

1998). Thus, it is noteworthy that “knowledge-sharing practices that focus on ‘communities

of practice’ that nurture and preserve the collective knowledge” tends to expedite direct and

informal knowledge (Heo and Yoo, 2002, p.3). Some studies also support the notion that tacit

knowledge is unstructured and shared by individuals through informal knowledge exchange

practices such as among peers or small groups (Lave, 1993; Lave and Wenger, 1991; Nonaka

and Konno, 1998; Nidumolu et al., 2001; Orlikowski, 2002; Tsai, 2002).

An FCB’s strong sense of identity, unique social system, and “familiness” (Habberson et al,

2003; Denison et al., Denison et al, 2004) can foster frequent informal discussions that, in

turn, can expedite the transfer of experience and knowledge among employees (Miller and

Le Breton-Miller, 2006). These complementary practices are very important, and the

practice of knowledge sharing are closely related to the constructs of training for workers,

incentive systems, and trust (Wong & Aspinwall, 2005; Mooradian, 2006; Zahra, 2007).

Thus, the factors affecting formal and informal knowledge sharing were explored via

empirical analysis in this research.

The effects of formal and informal knowledge sharing on the effectiveness of such an

activity was also examined following the method used by Zahra (2007). These questions

were examined and deemed appropriate for use (see Appendix I).

A number of dimensions of formal and informal sharing of knowledge is analysed for

assessing the overall frequency and nature of knowledge sharing activities in HKCI firms.

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Table 3.5.1. Measuring Formal and Informal Knowledge Sharing (DV)

Formal knowledge sharing

1. How often do you use formal communication channels to share information with your

employees about "emerging technologies”?

2. How often do you use formal communication channels to share information with your

employees about "technological technologies”?

3. How often do you use formal communication channels to share information with your

employees about "changes in industrial conditions”?

4. How often do you use formal communication channels to share information with your

employees about "changes in customer needs”?

5. How often do you use formal communication channels to share information with your

employees about "changes in the strategies and tactics of your competitors”?

Informal knowledge sharing

1. How often do you use informal communication channels to share information with

your employees about "emerging technologies’?

2. How often do you use informal communication channels to share information with

your employees about "technological technologies”?

3. How often do you use informal communication channels to share information with

your employees about "changes in industrial conditions”?

4. How often do you use informal communication channels to share information with

your employees about "changes in customer needs”?

5. How often do you use informal communication channels to share information with

your employees about "changes in the strategies and tactics of your competitors”?

(Source: Zahra et al., 2006)

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3.5.2. Independent variables

Three key independent variables (training for workers, incentive systems, and trust) were

examined here that have shown to play a crucial role in the extant literature in relation to

the level of knowledge sharing in firms. In order to measure these three variables (Cascio,

1986; Bollinger and Smith, 2001; Batt, 2002). this research adopted the measures

employed by Wong and Aspinwall (2005) to investigate the impact of incentive systems

and training for workers on knowledge sharing in a firm. The other independent variable

of trust, was studied using measures employed by Mooradian (2006) for investigating its

impact on knowledge sharing and its implementation in the HKCI. Tables 3.5.2a, b, c

respectively shows the specific items used for each independent variables of training for

workers, incentive systems, and trust. As noted earlier in the review of KM literature, KM

involves the key processes of knowledge sharing and integration. To this end, keeping in

mind the study’s focus on knowledge sharing, this research measures the nature and

extent to which firms in the HKCI engages its employees in activities that supports the

concepts of knowledge and knowledge management through the (1) provision of training

for its workers; (2) provision of incentives and rewards for its workers to acquire and share

knowledge within firms; and (3) fosters an environment of trust among employees’ peers

and managers for creating effective sharing of knowledge in the HKCI.

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Table 3.5.2a: Training for Workers

1. Training on the concepts of knowledge and knowledge management (KM)

2. Building awareness of KM among employees through training.

3. Training on using the KM system and tools.

4. Training for individuals to take up knowledge-related roles.

5. Training in skills development, such as creative thinking, problem solving, communication, soft networking, team building, etc.

(Source: Wong and Aspinwall, 2005)

Table 3.5.2b: Incentive Systems

1. Providing the right incentives to encourage KM behavior.

2. Motivating employees to seek knowledge.

3. Visibly rewarding employees who share and use knowledge.

4. Rewarding employees with an emphasis on group performance.

5. Creating motivational approaches to job performance assessment system.

(Source: Mooradian, 2006)

Table 3.5.2c: Trust

Trust in peers

1. If I got into difficulties at work, I know my colleagues would try and help me out.

2. I can trust the people I work with to lend me a hand if I needed.

3. Most of my colleagues can be relied upon to do as they say they will do.

Trust in management

1. Management at my firm is sincere in its attempts to meet the employees’ point of view.

2. I feel quite confident that the firm will always try to treat me fairly.

3. Our management would be quite prepared to gain advantage by deceiving the employees (reverse coded).

(Source: Mooradian, 2006)

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3.5.3. Moderator

A moderating variable’s effect can assess the strength of a relationship or alter the direction

between an independent and dependent variable (Baron and Kenny, 1986; Holmbeck,

1997; James and Brett, 1984). By a further extension of these concepts, a moderator can be

viewed as a variable that provides an interaction whereby the effect of one variable

depends on the level of another (Frazier et al., 2004). Therefore, in this study, FCBs are

considered as a moderator and the ways in which the moderator effects the relationship

between the IV and DV can be further analyzed. The measurement of whether a firm is an

FCB or a Non-FCB is measured based on questions from Chua et al. (2004), as shown in

Table 3.5.3 below.

Table 3.5.3.: Identification of FCBs

1. The percentage of family ownership of business.

2. The percentage of family members being managers in the business.

(Source: Chua et al., 2004)

3.5.4 Additional background data

Aside from independent and dependent variables, demographic information, though not

analysed in-depth, does provide a better understanding of the responding firms’

characteristics. This is done to access various elements and avoid missing any useful

information during the analysis. The summary of demographic information is show in Table

3.5.4. Following Chu et al. (2004), this study’s research questions were developed to

identify whether the participating firm is an FCB or a Non-FCB. Participants were asked

questions about the percentage of FCB equity and the number of family members in top

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management, which are crucial elements in evaluating the impact of AMO factors. Both the

number of generations to have succeeded in sustained family management and years of

operation may also have an impact on the firms’ overall performance. Furthermore, firm

size in terms of number of employees, along with a firm’s industry sector have also been

found to have an impact on its business performance (Harter et al., 2002; Calof, 1994). The

empirical research by Wong and Aspinwall (2005) was considered appropriate for the

measurement of the independent variable of ability (training for workers) and motivation

(incentive systems) in the HKCI. To examine the impact of training for workers, the study

employs existing instruments with theoretical concepts to enhance the validity of

constructs. The same study (Wong and Aspinwall, 2005) was used as a reference in

investigating whether incentive systems facilitate the knowledge-sharing process.

The questions focusing on FCBs factors and demographic information that are included

in this questionnaire uses the approach of uneven interval scale measurement. Wong and

Aspinwall (2005), Yang (2007), and Hoare (2006) suggested that the measurement

intervals does not need to represent an equal scale in the administration of survey and

measurement of variables. Therefore, some of the survey questions are not based on an

even measurement interval scale. In collecting some demographic data on enterprise size,

this study employs the following class intervals. For example, the number of employees in a

small-sized firm are considered to be those employing less than 25 staff; medium-sized firm

are considered to be those employing between 26 to 200 staff; for firms are considered to be

those employing 201 to 3,000 staff; and state-owned enterprises (SOEs), are considered to

be those employing over 3,000 staff.

Similarly, regarding increases in labour productivity, the measurement intervals for this

factor focuses on different percentages of family member proportions and it range from

between “< 10%” to “> 80%.” Other such factors where class intervals are uneven include:

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percentage of equity owned by family members, years of operation of an enterprise,

average sales and its increases in the last three years.

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Table 3.5.4.: Demographic Questions in the Questionnaire

1

Family-controlled businesses (FCBs)

I) FCBs, ii) Non-FCBs

2

Numbers of generation have succeeded–family management

i) 1 ii) 2 iii) 3 iv) 4 v) 5

3

Percentage of family members

i) < 10% ii) > 10%–30% iii) > 30%–50% iv) > 50%–80% v) > 80%

4

Equity of your enterprise owned by a family

i) < 5% ii) > 5%–15% iii) > 15%–30% iv) > 30%–50% v) > 50%

5

Position in the enterprise

i) CEO ii) General Manager iii) Managing Director iv) COO v) Others

6

Years enterprise has been operating

i) < 1 year ii) > 1–5 years iii) > 5–10 years iv) > 10–15 years v) >15 years

7

Number of employees

i) < 50 ii) 51–200 iii) 201–1,000 iv) 1,001–3,000 v) > 3,000

8

Category of your enterprise in the HKCI

i) Service (material supply) ii) Manufacturing iii) Product (own brand) iv) Component v ) Product Trading

9

Average sales per year in the past three years (RMB)

i) < 1 million ii) > 1–10 million iii) > 10–50 Million iv) > 50–100 million v) > 100 million

10

Increase of sales in the past three years

i) < 10% ii) > 10%–40% iii) > 40%–70% iv) > 70%–100% v) > 100%

11

Increase of labor productivity (the revenue contributed by an on-duty worker) in the last three years

i) < 10% ii) > 10%–40% iii) > 40%–70% iv) > 70%–100% v) > 100%

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3.6 Questionnaire design and sampling

This section discusses the process of developing the questionnaire for this thesis. As shown

in Appendix 3.1and Table 3.4, this research adopted items already used and tested in the

extant literature (Chua et al., 2004; Mooradian, 2006; Wong and Aspinwall, 2005; Zahra et

al., 2006).

3.6.1. Measurement and scales

Anderson and Gerbing (1988) suggest that researchers should first estimate a measurement

model before testing their hypotheses to avoid any misinterpretation of structural

relationships. The measurement and scales were qualified and selected based on the

relatively high values of validity and reliability for all the variables (Baker, 2002a). Thus, all

questions were highly relevant to the hypotheses being tested. A seven-point Likert scale

was developed for the measurement of the data collected from the participants(Sekaran

and Bougie, 2003). The executives and managers of firms in the HKCI were targeted to be

part of the research sample. The next step was to determine the sampling frame following

a set of directions (Malhotra 2008). The survey questionnaire was organized into three

sections: 1) questions about the independent variables (IV) consisting of incentive systems,

training for workers, trust, and FCBs; 2) questions about the dependent variable (DV), such

as effectives of knowledge sharing in the HKCI firms; and 3) questions pertaining to

demographic data, such as age, size, and nature of business.

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3.6.2 Data collection and sampling

Data can be collected in several ways, such as face-to-face or personal interviews,

personally administered forms, mailed or electronic surveys, and telephone interviews.

Each method has its own set of advantages and disadvantages (Dillman et al., 2009; Fowler,

1988; Frazer and Lawley, 2000; Malhotra, 2008; Sekaran, 2003; Zikmund, 2003). This

research had a large sample size and used an Internet-based questionnaire for collecting

data from employees of firms in the HKCI =. The data was collected by administering a

survey through an email invitation to firms in the HKCI using trade directories. Given the

geographically dispersed distribution of firms in Hong Kong, the choice of sending

questionnaires by email to 900 HKCI firms was considered as an appropriate strategy. Details

of the sampling, electronic survey and its administration are discussed next. The steps

involved in the selection of the research population, sampling frame, size, selection and

administration of the survey is shown in Figure 3.6.2

Figure 3.6.2 Steps in Sample Determination and Survey Administration

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3.6.3. Defining the Research population

To achieve the purpose of the current research, data on both FCB and Non-FCB firms were

distinguished to ensure a sufficient number of participants are received for both the groups.

In relation to the above, the research by Klein, Astrachan, and Smyrnios (2005) emphasized

three dimensions of family business: culture, power, and experience. These ideas are

consistent with the extant literature that focuses extensively on family culture.

Identifying and defining the subject may be difficult, but for the purposes of this research,

we employ the definition by Martos (2005, p. 167) who defined an FCB as a “a firm in which

the members of a single family have a sufficient stockholding to dominate the decision

taken by the owners’ representative body, whether this has a formal and legal character or

in the contrast is informal, and in which moreover there is desire or intention to maintain

the business in the hands of the following family generation.” Targeting the executives and

managers as the participants of this research aimed to clarify the concept of FCBs and

conduct an objective assessment of the different variables being examined.

Firms belonging to the HKCI comprised the sample population of this research. They must

have offices in Hong Kong and businesses registered under the HSIC code (Hong Kong

Standard Industrial Classification Code).

The Participant Information Sheet (See Appendix II) was emailed along with the other

attachments (consent form) to all potential participants in the HKCI. The survey questions

were approved by the Human Ethics Committee of the University of Newcastle, Australia

and the participants’ confidentiality were protected as per the Human Ethics guidelines and

standards of the University.

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3.6.4. Selection of sample

A simple convenient sampling approach was employed in the selection of sample for this

research. An invitation to take part in the online survey was sent by e-mail to employees

from a total of 900 firms in HKCI sector through convenience sampling. The email addresses

and telephone numbers were selected from the yellow pages database of Hong Kong

business directories. The HKCI-related businesses, such as services (material supply),

manufacturing, products (owned brand), and product trading companies, were chosen for

this research. A convenience sampling (FCBs and Non-FCBs) approach was applied. Surveys

are easily accessible (Fraenkei et al., 1993), particularly online surveys, even when the

desired respondents are hard to access (Fricker and Schonlau, 2002). However, some have

argued that this approach may diminish the external validity (Mann, 2003). Assuming a

conservative response rate of about 20.5% from the 900 questionnaires emailed, this

method was expected to yield a little under 180 usable and returned questionnaires. SPSS

software version 22 was utilized for performing reliability, validity, multiple regression, and

correction analyses. To avoid any sample errors, Cronbach’s alpha was used to assess the

reliability and confirmatory factory analysis (CFA) was used to examine the validity of all

independent and dependent variables before hypothesis testing (Baumgartner and

Hombury, 1996; Bollen, 1989).

3.6.5. Sampling frame

A sample frame consists of a list of elements or direction from which a representative

sample may be drawn for a study (Fowler, 1988; Malhotra, 2008; Saharan, 2003; Sigmund,

2003). In the current study, clothing manufacturing firms in Hong Kong were chosen as the

sample (Conway, 1997; Rouette, Fischer-Bobbie and Carl-Heinz, 2001). The study followed

Hong Kong Industry Department’s (2000) definition of a Hong Kong manufacturing firm,

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which is an organization that transforms raw material (fabric) by machine or by hand into

products (garments). Such a firm handle either part or all of its manufacturing processes

locally (in Hong Kong). Such an organization must at least have a headquarter or an office

in Hong Kong, for coordinating its manufacturing operations in China and other countries

for it to be regarded as a manufacturing firm and is thus included in the research.

3.6.6. Sample size

Reliable information on family firms is difficult to collect (Handler, 1989). The sample

frame for this research consisted of managers or senior executives and owners from 900

firms in the HKCI. Khamis and Kepler (2010), used a reliability criterion and proposed a

minimum sample size of ‘n’, which is equal or greater than 20+5k (where k refers to the

item number of independent variables). In this research, we finalized a total of 26 items in

the questionnaire to target a sample size of a bit over 100. According to Alreck and Settle

(2003), when the population is large, experienced researchers would consider 100

respondents to be the minimum sample size so that the minimum number of response rate

can be achieved.

This study employed a big sample size to enhance the likelihood of undertaking

substantive statistical analysis. Wilson Van Voorhis and Morgan (2007) note that a

population of 900 participants is a minimum level that can be considered acceptable for

a research of this nature. Furthermore, this study employed use Process Macro in SPSS to

bootstrap the size to 1000. This procedure shall be discussed in a subsequent section.

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3.7. Data collection method

All the 900 firms listed in the directory were extracted from the yellow pages. One person

from each company listed in the directory was contacted via an email. A single respondent

approach has the advantage of maintaining confidentiality and giving the respondent a

feeling of identity protection and risk reduction so that she or he can respond candidly

(Kohli, 1898; Lai et al., 2007).

As mentioned earlier, obtaining reliable information on family firms (Handler, 1989) is

difficult. However, by employing a big sample size and deploying an electronic survey

instrument to collect the data, from HKCI firms, this study was able to collect 100 plus

responses.

3.7.1. Administration of data collection

An electronic survey questionnaire allows respondents to complete the questionnaire at

their most convenient time and place (Sekaran, 2003). Given that this research required a

large number of participants from firms in the HKCI, this study assumed that (1) most

participants can answer the questionnaire upon receipt of the invitational email and

following the consent to participate in the study; and (2) they would be able to complete it

during office hours as they would have access to the Internet and a desktop or a similar

device at the time. The data collected through this survey protects the respondent’s

confidentiality and such an approach helps obtain sensitive financial or personal

information as well as increase response rates (Fowler, 1988; Lockhart and Russo, 1994:

Mathotra, 2004; Zikmund, 2003). Another advantage of this approach is that it is low in cost

(Sekaran, 2003; Shao, 2002; Zikmund, 2003) and requires no special training for

respondents to complete the surveys (Sekaran, 2003).

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A Participant Information Sheet outlining the details of the project was distributed to each

firm via email. The senior managers were invited to participate in the survey by clicking on

the web link, voluntarily, to complete and an anonymous questionnaire. The participant

information sheet contained contact and details about the project.

3.7.2. Data analysis

In order to test whether the research results supported the study’s hypotheses, several

statistical tests, such as CFA, Pearson’s product moment correlation, and multiple

regression analysis, as well as descriptive analyses, were employed to analyse the

information collected through the online questionnaire.

3.8. Power of tests of interactions

The answers from respondents were first analysed descriptively using frequency

distribution and mean scores to test for the statistical significance of the respondents

between the two categories of enterprise type (FCBs and Non-FCBs). The process of

probing interactions whenever a moderation model is specified with X ‘s (independent

variable) effect on Y (dependent variable) is moderated by another variable. A moderator

is a variable that moderates the direction or strength of the correlation between

independent and dependent variables (Baron and Kenny, 1986; James and Brett, 1984). A

moderator’s effect is considered as an interaction that explains the effect of how one

variable depends on the level of another variable (Frazier et al., 2004). In this study, the

moderating effect of FCBs can be examined though the above statistical tests.

In addition, Process Macro in SPSS was run with covariate approaches to analyse the

moderation effects of FCBs between AMO variables and knowledge sharing. Here,

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bootstrapping was used to infer the original data (Hayes, 2013, Williams and

MacKinnon, 2008). This method requires running more than one regression so that the

main effects of each interaction can be examined. Implementing the Process Macro

automatically generates an output of Simple slope from the analysis (Aiken and West,

1991; Cohen et al., 2003; Hayes, 2005). This procedure involves selecting a value of the

moderator (M), and calculating the conditional effects of X on Y at the values of the

moderator, and conducting an inferential test or generating a confidence interval. To do

so, an estimate of the standard error of the conditional effect of X is required for the

selected values of M (Aiken and West, 1991; Cohen et al., 2003).

A three-step approach was used in assessing the moderation effect test. In the first step,

the tolerance of the variance inflation factor (VIF) of each variable in the model was

examined to identify any multicollinearity issues that may create problems for regression

analysis results (Hair et al., 1995). A high VIF indicates presence of multicollinearity

between the explanatory variables. A high VIF value means a higher inter-correlation

among the variables. A VIF that is higher than 10 means that the variables are likely to be

affected by multicollinearity subject to tolerance from .05 to 10 (Belsley et al., 1980;

O’Brien, 2007). Eigenvalues close to 0 indicates a dimension that explains little variance

(Collins, 2009). Given that the causal regime is structured into the data, it becomes

possible to assess the degree to which various modelling approaches produce accurate

coefficient estimates. One of the methods used is to bootstrap the sample size to increase

it from 100 to 1000 (Hayes, 2013); as with a larger sample size, the standard errors

becomes much smaller.

In the second step, Process Macro was run in SPSS with the covariate approach. As the

sample size was small (around 119), the bootstrap confidence intervals were based on the

same set of 1,000 resamples from data obtained via the Process Macro in SPSS multiple

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analysis (York, 2012). This method is powerful and can be easily extended to be consistent

with the models using statistical control only. Process Macro can explain both the direct

and indirect effects in a moderation analysis as well as perform the inferential test for each

construct mathematically. At this point, by adding an interaction term to the model is

helpful if we want to test a hypothesis that focuses on correlations between AMO factors

and knowledge-sharing behaviours with FCBs as a moderator. A linear relationship should

exist between the dependent variable and the covariate for each group. Therefore, if there

is a case of high multicollinearity, such analyses can yield sufficiently reliable results with

which to test the study’s hypotheses (York, 2012).

In the third step, a simple slope analysis was generated to explain the regression analysis

for each moderator (interaction) results. Here, the selection of various values of M at which

to estimate the conditional effect of X on Y would be required. Discussing the interactions

and interpreting the results have been widely recommended (Aiken and West, 1991; Chen

et al., 2003). However, different choices are often made arbitrarily, which can be fixed by

following the John–Neyman Technique for moderator difference analysis, especially when

M is highly skewed (Hayes, 2013).

3.9. Descriptive statistics

The current research adopted a descriptive analysis to gather observations about the data

collected for analysis. Standard deviation is a measure of central tendency and variability,

including median, mode, mean, skewness, and kurtosis. The survey may have a structured

research design and an appropriate number of respondents to maximize reliability and

minimize errors (Barlett et al., 2001; Fowler, 2013).

Additional demographic data for the research were collected to obtain information about

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number of employees, their position in the firm, and the equity percentage of family

members. The standard deviations and the mean values of each variable (FCBs, training for

workers, incentive systems, trust, and knowledge sharing) were analysed to examine the

level of normal distribution. Furthermore, the two groups of demographic data of FCBs and

Non-FCBs in HKCI were sorted to identify the differences between them.

Normality is a technique that is used to test whether the collected data can satisfy the

assumptions for subsequent statistical analysis that will be undertaken. For this, a

histogram was used to examine the information graphically and to explain the distribution

of each assessed item. Additionally, the values of skewness and kurtosis, which identifies

the shape of distribution, were also used to examine the normality. Homogeneity of

variance was tested for all variables to ensure that the assumption of normality was

satisfied. Both normality tests were used to obtain supporting data for this investigation.

3.9.1. Reliability and validity

Ethical issues may be considered at all stages of the research design process. The

researchers may ensure that the questionnaire items can consistently and accurately

assess what they are supposed to assess and do so in a reliable and valid manner (Sigmund,

2003). All efforts were made to comply with the requirements set by the Human Ethics

Committee of the University of Newcastle, Australia. In line with the Ethics approval, the

researcher will not disclose the participants’ details to other parties and ensure the

confidentiality of information provided by the respondents (Collis & Hussey, 2013; Corti &

Backhouse, 2002; Mackey & Gass, 2015). Furthermore, the participants were informed

that the data collected would not be used for any commercial purposes. Finally, the

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researcher’s non-involvement with the HKCI is declared; hence, there are no conflict of

interests.

The reliability of a measure refers to the extent to which the assessments are free from

error, and that the results would remain consistent even if repeated assessments are

adopted (Malhotra, 2008; Sekaran, 2003; Zikmund, 2003). This study replicated questions

covered in the extant literature (Chua et al., 2004; Mooradian, 2006; Wong and Aspinwall,

2005; Zahra et al., 2006). A detailed assessment of reliability and validity tests using SPSS,

is presented in later sections.

Reliability also refers to the proportion of variability in a measured mark, which is identify

the variability in the true marks, rather than the type of errors. A reliability of .90 means

90% of variability in the observed marks are true and 10% is from error. Some limitations

in measurements such as test–retest reliability is potentially improper if a respondent’s

prior experience in the first testing affects his/her responses in the second testing

(Carmines & Zeller, 1979).

Whereas validity explains the extent to which a measure precisely preforms the concept

(Punch, 1998). Two broad measures of validity include: internal and external and validity.

Internal validity states the reasons for the findings of the study, and helps reduce

unanticipated reasons for these findings. In comparison, External validity shows the ability

to employ with confidence the results of the study to other people and other situations as

well as ensure that the “conditions under which the study is carried out are representative

of the situation and time to which the results are to apply” (Black, 1999, p. X).

Using established methods to access the validity and reliability of the research is one of

method to produce trustworthy and useful findings. In deciding the reliability and validity

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of a research, diminishing error is an essential factor. In any case, there is no perfect set of

procedure without limit error. All measures bring some residual bias, inaccuracy or

unreliability (Punch 1998). While endeavours can be applied to diminish such risks or

especially systematic errors, they are perceived as a limitation in all type of research.

Although researchers may employ as many methods as possible to secure validity and

reliability; still, there remains the likelihood that flaws may happen at the outline,

measurement, or analysis stage, ultimately finding in under ideal research findings.

3.9.2. Reliability analysis with Cronbach’s alpha test

Cronbach’s alpha test is a common statistical approach to measure internal reliability (Shin

et al., 2000). A Cronbach’s alpha of above .70 is considered satisfactory (Nunnally, 1978),

which means that the measurement is reliable and suitable for similar studies in different

environments (Gold et al., 2001; Chuang, 2004), such as Hong Kong.

3.9.3. Testing the moderating effect

The moderator (FCBs) effect was assessed for H2.1, H2.2, and H2.3 on training for workers,

incentive systems, and trust were assessed.

The interaction variables were included in the multiple regression, and the R ²

(coefficient of determination) of those regression models assessed showed some

change in the statistics. Considering statistical significance and practicality, the p-

value of the interaction variables of less than .05 indicates that the relationship is

significant.

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H2.1 proposes that the impact of ability on knowledge sharing is moderated by FCBs.

Referring to Saharan & Bougie (2010), the moderator effect is illustrated by the interaction

of training for workers and FCBs in explaining knowledge sharing. Multiplying the measured

item creates the product variable, and for the scores of ability (Training for workers) and

FCBs, the interaction variable (termed as ATW x AQ) is used to determine if this moderator

influences knowledge sharing. The Multiple regression model is illustrated in Figure 3.9.3a.

Figure 3.9.3a Regression Model for Ability (Training for Workers) and FCBs

Using the multiple regression model for assessing H2.1 shown above, the effect of ability

(training for workers) on knowledge sharing and the moderating effect of FCBs were

assessed using Sharma et al. (1981). The presence of a significant interaction demonstrates

that the impact of one predictor variable on the response variable is distinctive at various

values of other predictor variables. This assumption is examined by adding an interaction

term to the model, in which the two predictor variables are multiplied. Adding an

interaction term to a model changes the interpretation of all the coefficients; thus, it is more

valuable to comprehend the moderating effects (Hair, 2016; Hayes, 2013).

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Similar to the above analysis, multiple regression was used to test H2.2. This moderation

test illustrates that the effect of motivation (incentive systems) on knowledge sharing is

moderated by FCBs. Multiplying the measured item creates the product variable, and for

the scores of motivation (Incentive systems) and FCBs, the interaction variable (termed as

AIS x AQ) is used to determine if this moderator influences knowledge sharing. The

mult ip le regression model is shown in Figure 3.9.3b, and the moderator effect is

developed as stated below.

Figure 3.9.3b: Regression Model for Motivation (Incentive Systems) and FCBs

Similarly, H2.3 proposes that FCBs positively act as a moderating factor in the relationship

in between trust and knowledge sharing, as shown in Figure 3.9.3c.

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Figure 3.9.3c: Regression Model for Opportunity (Trust) and FCBs

Similar to H2.3, the moderating effect is examined via the multiple regression analysis.

Multiplying the measured item creates the product variable, and for the scores of

opportunity (trust) and FCBs, the interaction variable (termed as AT x AQ) is used to

determine if this moderator influences knowledge sharing.

Figure 3.9.3c indicates the summary of the regression analysis data for testing the

moderator effect between opportunity (trust) and knowledge sharing.

3.10 Summary and limitations

This chapter outlined and a summary of the testing methods of all the hypotheses is

provided in Figure 3.10 below.

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Figure 3.10: Flow Chart of the Measurement Methods Used in the Research

Further, the chapter provided a systematic review of the methodological steps employed in

this thesis: progressing from descriptive statistics through assessing the reliability and

validity of constructs to testing the study’s hypotheses. The chapter also highlighted the

strengths and weaknesses of each approach. The next chapter discusses the results, analysis

and testing of the hypotheses.

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Chapter 4

Data Analysis and Results

4.1 Introduction

The previous chapter described the methodological approach adopted to collect the data

for this research. This chapter presents the analysis of the survey data and the findings for

each hypothesis are examined. A total of 119 valid responses were returned from the 900

targeted participants of a survey of Hong Kong clothing industry (HKCI) firms between

early February to mid-April 2016, representing a 13.2% response rate. Using SPSS (ver.

22), the data was analysed. This chapter is organized into four parts, a summary of the key

hypotheses being tested through the data analysis is shown in Figure 4.1.

Figure 4.1: Conceptual Model for AMO model in Knowledge sharing

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The rest of the chapter is structured as follows. Part 1 introduces the chapter. Part 2

presents how the data was collected and analysed. Part 3 deals with the characteristics of

the independent and dependent variables. Part 4 presents the descriptive statistics and

reports on the measurements of the constructs to facilitate further analysis. Part 5

presents the testing of reliability and validity of the data collected. Part 6, presents the

analytical approaches for testing the study’s six hypotheses. These are discussed in the

order of their presentation. Finally, a summary of the results is presented.

4.1.1 Data preparation

Data preparation involves data coding and cleaning the data prior to analysis; such a

process ensures the accuracy of data from its crude form (Malhotra, 2012). The

preparation of a crude structure into an appropriate data structure is crucial, because it

makes the data usable for subsequent computerized statistical analysis (Fowler, 1988;

Banerjee et al., 2014). To ensure the quality and convergence, the data were categorized

into different classes (Brown et al., 2014). Responses from participants were collected,

sorted, coded, cleaned, screened, and classified into different categories (Fowler, 1998;

Malhotra, 2004).

Data was analysed to check the precision of the information and to get a general picture

of the phenomena under study (Hair et al., 2006; Malhotra 2007; Sekaran, 2003).

Particularly, primary analysis comprised of an assessment of the effects of missing data,

non-response error, identification of exceptions and dispersion normality (Hair et al.,

2006; Malhotra 2007). The percentage of missing data for each item was noted. A case is

completely barred from all the analyses if it is missing even a bit of data, because it can

seriously, constrain the sample size (Pallant, 2001; Hair et al., 2010). If there are only ≤5%

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missing values in a random example, the problem is less critical, and most systems

handling missing value yield comparable results (Tabachnick et al., 2001). Overall, the aim

was to ensure the propriety of information for further statistical tests to be run using SPSS

(ver. 22).

4.1.2. Data coding and entry

After the questionnaires were checked, numbers were assigned to represent the

participants for each question on the questionnaire, thus facilitating data coding

(Malhotra 2004; Zikmund, 2003). Most of the responses on the questionnaire were

precoded to make them less complex and to help identify the items adopted for empirical

analysis. Next, the coded data were entered into SPSS (ver. 22) (Sekaran, 2003; Hair et al.,

2006). Knowledge sharing (KS) include formal and informal knowledge and Table 4.1.2

shows the classified codes for all the variables used in this research.

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Table 4.1.2 Data Coding for all Measurement Variables

Key Variables Measurement Items Codes Remarks

Position in firm DPIF

Number of employees DNOE

Years of firm in operation DYFO

Business category in the HK clothing industry? DBC

Average sales per year in the past 3 years ( HK$) DAS

The increase of sales in the past 3 years DIOS

The increase of labour productivity ( the revenue

contributed by an on-duty worker ) in the last 3

years. DILP

Family control businesses FCBs

Equity of your firm owned by family FQF

Precentage of family members FPM

Numbers of generation have succeeded to family

management FNG

Ability Training for workers TW

All training of

workers factors are

prefixed with letter"

IS". TW_1,2,3,4,5

Moivation Incentive systems IS IS_1,2,3,4,5

Tust Tust T T_1,2,3,4,5,6

Formal knowledge FK K_1,2,3,4,5

Informal knowledge IK K_6,7,8,9,10

Family

Demographic

All individual

demographic

variables are prefixed

with letter " Q"

All family related

variables are prefixed

with Leter " Q"

Knowledge sharing

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4.2. Sample profile

As indicated in Chapter 3, the questionnaires were sent out to 900 firms located in the

HKCI. A total of 120 responses were received, yielding an overall response rate of 13.3%.

A total of 119 usable responses were included in the analysis. The demographic data were

gathered in the first section of the questionnaire, with the data of different variables

included in subsequent sections.

First, the demographic information was analysed, and the descriptive statistics were

generated to perform an analysis of any significant factors. The response frequency and

descriptive statistics of those factors are presented in Table 4.2a

Respondent’s position in the firm

As shown in Table 4.2a, most of the respondents (96.6%, 117 responses) occupied senior

positions at their respective organizations. Accordingly, given the high level of senior

management represented in the sample, it is noted that these employees were

knowledgeable about the business and operation of the enterprise, thereby implying that

are capable of completing the survey.

Years of operation

Referring to Table 4.4.2, majority of the responding firms (59 %, 63 responses) had been

established for 10 years or more. Overall, only 22.7 % (27 responses) of the responding

firms have been in existence for less than a year. This demonstrates that most

respondents have had long-term business involvement in the HKCI.

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Firm size and employment

For the purposes of this study, the number of employees in a firm is used as a proxy for

the size of a firm and it includes both factory workers and office staff. Marketing,

merchandising, managerial, and financing employees were grouped as office staff (Moon,

2001). All organizations who participated in this study had an office in Hong Kong. As

noted in Table 4.4.2, the number of workers in HKCI ranged from <50 to >3000 employees.

As per the Hong Kong Trade and Industry Department (2000), small and medium-sized

enterprise (SMEs) are characterized as those manufacturing firms that employ fewer than

100 HK workers whereas non-manufacturing firms that employ fewer than 50 employees

are considered small and medium-sized firms. The results indicate that the HKCI has a lot

of small and medium-sized manufacturing and non-manufacturing firms. It is also

indicated by the government’s statistics that most of the firms (>98%) that are engaged in

the service and manufacturing sectors in HKCI are SMEs (Hong Kong Trade and Industry

Department, 2000). In this study, 50.4% (60 firms) of the sample firms had local workers of

fewer than 100 individuals; thus, a bit over half of the participating firms in the sample

belonged to the SME group (Table 4.2.2).

Business category of the firm in the HKCI

The categories of a firm identified within the HKCI, which were covered in this study

included the following: manufacturing, product (own brand), product trading and product

services (material suppliers). A total of 39 responses were from manufacturing (32.8%), 30

respondents (25.2%) were from product (own brand) firms and 28 (23.5% respondents)

were from product trading firms. The remaining 16% (19 respondents) were from product

services (material supply) firms from the HKCI.

Performance Measures

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Annual sales in the past three years

To measure the business performance of HKCI firms, each respondent in this study was

asked to assess his or her company’s present business performance in terms of sales

growth, productivity, and annual sales in the previous three years.

Of the 119 responding firms, the majority (55.5%, 66 responses) of respondents reported

that their companies had less than US$10 million in average annual sales turnover in the

past three years, whereas respondents from 17 organisations (14.3%) reported a sales

turnover between US$50 and US$100 million (See Table 4.4.2 for details).

Increase of sales in the past three years

A little over two-thirds of the respondents (68.1%, 81 responses) reported less than 10%

increase in sales over the past three years, and only 2.5% (3 responses) reported sales

increase of over 70%–100% (Table 4.4.2).

Increase of labour productivity in the past three years

Finally, most of the respondents (73.1%, 87 responses) had less than 10% increase in

labour productivity (i.e., the revenue contributed by an on-duty employee) in the past

three years, and only a small percentage (22.7%, 27 responses) reported productivity

increases of between >10% and <=40%, only three companies (2.5%) reported

productivity increases of between 40%–70 %, and two firms (1.7%) reported the highest

increase in productivity of between 70%–100% (Table 4.2a).

For the purposes of this study, the respondents and their corresponding firms were

deemed appropriate representatives for this sample as they had been in operation for a

long time. Each of the 119 responders were HKCI sector firms. Additionally, given that

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most Hong Kong managers could communicate in English, there was no apparent issue

discovered concerning the capacity of the respondents to comprehend the definition of

any specific word or phrase in the questionnaire. The other demographic profiles and

characteristics of the respondents and employees, such as year of operation, are

presented in Table 4.2a.

Table 4.2a Response Frequencies of Demographic Data

Response Percent Response Count

1.CEO 11.8 14

2. GENERAL MANAGER 0.8 1

3. MANAGEING DIRECTO R 16.8 20

4. CO O 16.8 20

5. O thers 52.1 62

1. =or <1 22.7 27

2. >1 to 5 17.6 21

3. >5 to 10 11.8 14

4. >10 to 15 41.2 49

5. >15 6.7 8

1. =or <50 50.4 60

2. 51-200 15.1 18

3. 201-1,000 5.9 7

4. 1,001-3,000 16 19

5. > 3,000 11.8 14

1. Manufacturing 32.8 39

2. Product (owned brand) 25.2 30

3. Product Trading 23.5 28

4. Service (material supply) 16 19

1. = or < 1 31.1 37

2. >1 to 10 24.4 29

3. >10 to 50 10.1 12

4. > 50 to 100 20.2 24

5. > 100 14.3 17

1. = or < 10% 68.1 81

2. >10% to 40% 26.1 31

3. >40% to 70% 3.4 4

4. >70% -100% 2.5 3

5. > 100% 0 0

1. = or < 10% 73.1 87

2. >10% to 40% 22.7 27

3. >40% to 70% 2.5 3

4. >70% -100% 1.7 2

5. > 100% 0 0

Position in your enterprise

The% increase of labour productivity ( the revenue contributed by an on-duty workers ) in the past 3 years.

The % increase of sales in the past 3 years

Average sales per year in the past 3 years (HK$ million(s))?

Number of employees?

Number of year(s) your enterprise has been operating?

Business Category that your firm belongs to the clothing industry

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4.3 Characteristics of dependent and independent variables

4.3.1 Profile of FCBs and Non-FCBs

In this study, FCBs and Non-FCBs are thought to influence the relationships between the three

AMO factors [motivation (incentive systems), ability (training for workers), and opportunity

(trust) factors] and knowledge-sharing outcomes. Referring to the classification in Table 4.3.1a,

56.3% of the respondents (67 out of 119) were classified as FCBs. Further, nearly 60.5% of the

respondents (72 out of 119) stated that less than 10% of family members were in top

management, and 49.6% (59 out of 119) family members had at least 5% stake in the equity

capital of the enterprises. Finally, 52.9% of the respondents noted that family-owned companies

(63 out of 119) had succeeded for one generation.

Table 4.3.1a Response Frequency of FCBs Data

Measuring items( Family business related) Response Precent Response Count

Do you think your organization is a family enterprise?

Yes 56.3 67

No 43.7 52

Percentage of family members in the top management team?

less than or =10% 60.5 72

>10 to 30% 13.4 16

>30% to 50% 7.6 9

>50% to 80% 6.7 8

more than 80% 10.9 13

Equity of your enterprise owned by family members?

less than or =5% 49.6 59

>5% to 15% 7.6 9

>15% to 30% 31.9 38

>30% to 50% 6.7 8

more than 50% 4.2 5

How many generation(s) have succeeded to family management?

1 52.9 63

2 32.8 39

3 9.2 11

4 0.8 1

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4.3.2 Descriptive statistics of items in this study

A seven-point Likert scale for the online survey questionnaire (1=Strongly disagree; 2=Disagree;

3=Moderately disagree; 4=Neither agree nor disagree; 5=Moderately agree; 6=Agree;

7=Strongly agree) for measuring the characteristics of all variables. These are shown in Table

appendix E.1- E.4.

Ability (Training for Workers)

Refer to Appendix E.1, the mean and standard deviation are used to check the ratio and scale of

interval measures. The mean and standard deviation values were utilized to quantify the

variation in a set of data as well as highlight the value of the data set that is different from the

mean (Zikmund et al., 2003). The mean results of training for workers varied from 4.26 to 4.59

and has a standard deviation of 1.44 to 1.64 between the highest and lowest scores. The overall

of the mean and standard deviation of this construct are 4.41 and 1.38 respectively. The

outcomes suggest that numerous respondents embraced training of employees to improve their

performance to effectively share knowledge and understand KM concepts in their respective

companies.

Motivation (Incentive Systems)

Refer to Appendix E.2, the mean of incentive systems measurement items ranged from 4.48–

4.67, with a standard deviation of 1.39 to 1.49 between the highest and lowest scores. Then,

the overall of the mean and standard deviation of this construct are 4.56 and 1.31 respectively.

The values suggest that on average, many respondents viewed incentive and reward policies to

motivate their work performance. To ensure the effective implementation of knowledge

management, incentive systems are critical in family enterprises (Chrisman et al., 2007). Wong

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and Aspin Wall (2005) have reported that incentive systems provide motivation to drive workers

to engage in knowledge sharing.

Opportunity (Trust)

Refer to Appendix E.3, the mean of Opportunity (Trust) measurement items varied from 4.74–

5.08 with a standard deviation of 1.26-1.4 between the highest and lowest scores. Then, the

overall of the mean and standard deviation of this construct are 4.85 and 1.19 respectively. The

results support the notion that trust among employees is strongly relied upon by many

respondents to share knowledge.

Knowledge Sharing

Refer to Appendix E.4, this study’s dependent variable of knowledge sharing (formal and

informal) has items in the questionnaire that further delineates this dependent variable. The

information presented in Table 4.5.1c indicates that the mean values of formal and informal

knowledge sharing are between 4.35–4.46 and 4.42–4.61, respectively. These values,

respectively, had standard deviations between 1.26-1.38 and 1.25-1.35, between the highest

and lowest scores. The overall of the mean and standard deviation composite scales of this

construct are 4.48 and 1.09 respectively. This would suggest that workers in the sample

practiced formal and informal knowledge sharing activities within firms in the HKCI.

4.4 Preliminary analysis

An evaluation on normality of distribution for constructs is needed to identify that they meet

the assumptions of regression before running multiple regression in SPSS (Pallant 2007; coakes,

Steed and Ong, 2010). Skewness and kurtosis show the state of distribution with intervals and

proportionate levels of information. Several guidelines suggest that, if the distribution of a

variable is symmetrical, then the result for skewness and kurtosis are zero, subject to whether

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the observed distribution is normal (Bagozzi and Baumgartner, 1994; Gliner, 2011). Positive

values for skewness demonstrate a positive skew, wherein positive values for kurtosis pinpoint a

distribution with less variability (leptokurtic). On the contrary, negative values for skewness

demonstrate a negative skewness, whereas negative values for kurtosis indicate highly

dispersed distributions (playkurtic). Further descriptive statistics, such as measures of variability

and central tendency, can likewise be utilized to determine the normality of the distribution.

4.5 Skewness and Kurtosis

The values of skewness and kurtosis demonstrating the state of distribution are utilized for

testing normality (D’Agostino and Pearson, 1973; Bowman and Shenton ,1975; Peason et al.,

1977). Skewness and kurtosis values in the range of between +2 and -2 demonstrate the

normality of the data distribution (Gliner, 2011, Coakes, 2013). Referring to Table 4.6, the

negative values of skewness that were found in items of Knowledge Sharing within +/-2 can be

considered acceptable and is an indication of normality (Coakes, 2013). All variables are slightly

skewed to the right with ranging from- .05 to -.675, with a relatively long tail in the recurrence

distribution curve. A negative skewness trends to the right side (Hair et al., 2001), implying that

they are approximately typically distributed. Although they are on the right side of the curve,

they do not significantly veer off from normality.

The kurtosis statistic of all variables indicated a normal curve ranging from- .205 to -.634 except

for trust, which is at .029, and of these, values within +/-2 are considered acceptable (Hair at el.,

2006; Coakes, 2013). Tabachnick and Fidell (2007, p.81) suggested inspecting the shape of the

distribution by a histogram allows for further examination of normality of distribution. Kurtosis

is used to reveal the “peakedness” or “flatness” of the distribution, whereas skewness refers to

the unbalanced state (i.e. shifting to one side whether left or right) compared with normal

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distribution (Hair et al., 2016). The distribution of a normal curve was bell-shaped based in the

histogram, thus indicating that the scores on the variables are normally distributed (Gliner et al.,

2011).

4.6 Test of distribution normality

Table 4.6a Tests of Normality

N Mean Std.

Deviation

Skewness Kurtosis

Statistic Statistic Std.

Error

Statistic Statistic Std.

Error

Statistic Std.

Error

ATW 119 4.4118 .12611 1.37565 -.333 .222 -.606 .440

AIS 119 4.5613 .12040 1.31337 -.330 .222 -.634 .440

AT 119 4.8499 .10906 1.18971 -.675 .222 .029 .440

AK 119 4.4824 .09950 1.08547 -.056 .222 -.205 .440

Valid N

(listwise)

119

Next, the normality of data for each construct was examined. The distribution of data must

correspond to a normal distribution to achieve normality (Hair et al. 2006). The normality

assumption is assessed to investigate the approximate distribution of the observed variables (by

examining statistics such as histogram, stem-and leaf-plots, boxplot, detrended normal plots,

skewness and kurtosis) (Bagozzi and Baumgatner, 1994), as well as figures, such as normal

probability plots of ordinary, studentized, or Jackknife residuals. Furthermore, goodness-of-fit

tests, such as the Kolmogorov–Smirnov test (Stephens, 1974, Looney et al.1985), and, in the

case of small sample sizes (e.g., n<50), the Shapiro–Wilks (1965) test, can also be performed.

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The results from statistical data analysis are presented in Table 4.6.1a. To examine normality

with detrended probability plots and the normal probability, the Kolmogorov–Smirnov statistic

is used with a Lilliefors significance level in this study. As all statistical data are assumed to be

greater than .05, this indicates that all data are at a significant level. Furthermore, as the

sample size is more than 100 in this research, the results of the Shapiro–Wilk statistics are also

significant.

Figure 4.6 Summary of Histograms for all Variables in the Model

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*ATW = Average Training for workers *AIS= Average incentive systems *AT= Average Trust *AQ= Family control business (FCBs) *AK= Average knowledge sharing Descriptive data of FCBs and Non-FCBs in the HKCI

Insights on knowledge-sharing practices in the HKCI may be obtained from the distinct effects of

FCBs and Non-FCBs. The two groups of demographic data of FCBs and Non-FCBs in HKCI are

presented in Table 4.6. As shown in Table 4.6, some significant differences were found between

FCBs and Non-FCBs in relation to business performance. FCBs performed better than Non-FCBs

in terms of average sales of more than HK$10 million per year, and FCBs did relatively well in

terms of increase in sales from 10%-70%. However, other demographic data did not offer any

conclusive insights to clearly demonstrate the influence of FCBs on knowledge-sharing practices

in the HKCI-related industries. In terms of the percentage increase in labour productivity (the

contribution of on-duty workers) in the past three years, not much difference in performance

was found between FCBs and Non-FCBs.

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Table 4.6b Descriptive Analysis of FCBs and Non-FCBs in the HKCI

` Measurement Items

Response

Percent

Response

Count

(Total

responses: 119)

Response

Percent

Response

Count

(Total

responses: 119)

1.CEO 0 0 11.5 6

2. GENERAL 22.4 15 9.6 5

3. MANAGEING

DIRECTOR 17.9 12 15.4 8

4. COO 0 0 1.5 1

5. Others 46.3 31 59.6 31

1. =or <1 19.4 13 27 14

2. >1 to 5 17.9 12 17.3 9

3. >5 to 10 10.4 7 1.9 1

4. >10 to 15 10.4 7 13.5 7

5. >15 41.8 28 40.4 21

1. =or <50 44.8 30 57.7 30

2. 51-200 13.4 9 9.6 5

3. 201-1,000 20.9 14 9.6 5

4. 1,001-3,000 9 6 1.9 1

5. > 3,000 11.9 8 19.2 10

1. Manufacturing 40.3 27 28.9 15

2. Product (owned 20.9 14 30.8 16

3. Product Trading 25.4 17 21.2 11

4. Service (material 13.4 9 19.2 10

1. = or < 1 26.9 18 36.5 19

2. >1 to 10 25.4 17 23.1 12

3. >10 to 50 13.4 9 5.8 3

4. > 50 to 100 14.9 10 13.5 7

5. > 100 19.4 13 21.2 11

1. = or < 10% 64.2 43 73.1 38

2. >10% to 40% 29.9 20 21.2 11

3. >40% to 70% 4.5 3 1.9 1

4. >70% -100% 1.5 1 3.8 2

5. > 100% 0 0 0 0

1. = or < 10% 70.2 47 76.9 40

2. >10% to 40% 23.9 16 21.2 11

3. >40% to 70% 4.5 3 0 0

4. >70% -100% 1.5 1 1.9 1

5. > 100% 0 0 0 0

The% increase of labour

productivity ( the revenue

contributed by an on-duty workers

) in the past 3 years.

Position in your enterprise

Number of year(s) your enterprise

has been operating?

Family

(52 resondents)(67 repondents)

Non-Family

Number of employees?

Business Category that your firm

belongs to the clothing industry

Average sales per year in the past

3 years (HK$ million(s))?

The % increase of sales in the past

3 years

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4.7. Summary of descriptive data

The analysis of the independent variables shows that the mean values of all measured

constructs were high (ranging between 4.89 and 5.04 on a seven-point Likert scale).

The outcomes of Knowledge-Sharing factors demonstrated that employees in the HKCI

may effectively share and gather knowledge among their peers and managers the

following section introduces the tests of correlations among the variables and checks

the validity and reliability of the constructs.

4.8 Reliability and validity of measured data

To test the theoretical constructs in the model, reliability and validity tests were

carried out. The relationship between reliability and validity can be treated as true

score model (Malhotra, 2010). Theoretical constructs can only be measured through

detectable measures or indicators that determine the full theoretical meaning of the

core construct; thus, multiple indicators of a construct are required (Steenkamp and

Baumgartner, 2000). Both validity and reliability are observed in the current study by

using SPSS, as it allows researchers to test the impacts of dormant variables on

observed variables and to determine the partial error (Baumgartner and Homburg,

1996: Bollen, 1989).

4.8.1. Validity of measured data

Before the hypothesis test, factor analysis was utilized in this study to examine the

validation of variables through key component analysis. The tests were run using SPSS

to analyse the correlations among the key variables (incentive systems, training for

workers, knowledge sharing, trust, and FCBs). This key variable is purposefully

produced by SPSS for subsequent multiple regression analyses. The criteria and

technique of measurements are clarified below.

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1. Principal component analysis was used as a technique for factor extraction.

Eigenvalues of (> 1.0) identify the amount of differences in the variables accounted by

a specific factor. A component was framed as a solitary variable, as its Eigenvalue was

higher than 1, thus meeting the accompanying two criteria.

2. Kaiser–Meyer Olkin (KMO) was used to gauge different critical relationships

among various variables (Kaiser, 1974). KMO was calculated as a measure somewhere

around 0 and 1, wherein an estimation of near 1 indicates an abnormal state of

correlation between variables. Tabachnick and Findell (2007), as referred to in

Williams et al., 2010, recommended that outcomes larger than .50 represent a

satisfactory rate of correlation.

3. Bartlett's test of sphericity was utilized to examine the significance of the

components (smaller than .05), which were distinguished in the component analysis.

4.8.2. Validity of independent and dependent variables

The validity of independent and dependent constructs was examined using KMO,

which measures the sample adequacy (check), and Barlett's test of sphericity was

adopted to examine the variables (incentive systems, training for workers, trust,

knowledge sharing, and FCBs). As demonstrated in Table 4.9.2a and 4.9.2b, KMO tests

have the estimation of equivalent to and higher than the measure (>.50 or equivalent

to .50) and the significant value of Barlett's test of Sphericity is .00 (paradigm smaller

than .05). The outcomes indicate that the gathered data of independent and

dependent variables are critical in the test and are acceptable for further factual

analysis.

Meanwhile, the results of factor analysis affirm that FCBs and KNOWLEDGE SHARING

(formal and informal) had "component loadings" larger than .50. In this way, the

individual key components for independent and dependent variables contributed to

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their respective constructs and were framed as a solitary variable separately (Hair et

al., 2006)

Table 4.8.2 Factor Analysis of Variables

Factors Items

Component

Matrix

Cronbach's

Alpha KMO

Barlett's

Test (Sig)

Ability ( Training for

workers)

TW1 .865

.939 .892 .000

TW2 .917

TW3 .923

TW4 .883

TW5 .901

Motivation ( Incentive

Systems)

IS1 .833

.945 .880 .000

IS2 .915

IS3 .909

IS4 .902

IS5 .918

Oportunity ( Trust)

T1 .910

.947 .900 .000

T2 .898

T3 .847

T4 .888

T5 .892

T6 .907

FCBs FMP .875

.690 .500 .000 FOE .875

Knowledge sharing

(Formal and Informal)

K1 .769

.950 .913 .000

K2 .819

K3 .811

K4 .779

K5 .885

K6 .849

K7 .877

K8 .840

K9 .815

K10 .861

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4.9. Reliability analysis

Reliability reflects the extent to which an indicator is free from random errors

(Diamantopoulos and Siguaw, 2000; Malhotra, 2007; Hair et al., 2009).

A typical statistical approach to test internal consistency would be the Cronbach’s

alpha test (Shin et al., 2000). Alpha values <.60 are thought to be weak, whereas

values (the correlation scores) ≥.7 are considered robust for this research (Nunnally,

1978). Results of the reliability tests to measure training for workers, trust, knowledge

sharing and incentive systems are presented below in Table 4.8.2.

4.9.1. Ability (Training for Workers)

As shown in Table 4.8.2, the alpha value of training for workers was .939, higher than

the criterion value (≥.7) suggested by Nunnally (1978). The analysis shows that the

gathered data is robust, and that this item scale (TW1-5) has a strong internal

reliability for further statistical analysis. As stated by Lubans et al. (2010), the scale has

more items than necessary or has been repeating in the scale for reliability test if the

alpha value is >.9. Accordingly, some repetitive items in this scale might be reduced in

further studies.

4.9.2. Motivation (Incentive Systems)

As shown in Table 4.8.2, the alpha value of incentive systems was .945, higher than the

criterion value (≥.70) suggested by Nunnally (1978). This outcome demonstrates that

the data collected are statistically robust, and that this item scale (IS1-5) has solid

inner dependability for further measurable examination. As per Leech et al. (2010), an

alpha value >.9 indicates that the items in the scale are monotonous for the reliability

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test, or that the scale has a larger number of items than necessary. Accordingly, some

redundant items in this scale might be excluded in further studies.

4.9.3. Opportunity (Trust)

As shown in Table 4.8.2, the alpha value of trust was .947, thus meeting the criterion

(≥0.70) suggested by Nunnally (1978). This outcome demonstrates that the data

gathered are statistically robust, and that the (T1-5) item scale has strong internal

reliability for further statistical analysis. As per Leech et al. (2010), an alpha value >.9

indicates that the items in the scale are monotonous for the reliability test, or that the

scale has a larger number of items than necessary. Accordingly, some tedious items in

this scale might be excluded in further studies.

4.9.4. Knowledge Sharing

The measurement items of knowledge sharing, including formal and informal

knowledge sharing were tested for Cronbach’s alpha reliability test. The alpha values

of formal and informal knowledge sharing were both over .95, thus meeting the

criterion of high reliability (>.70) suggested by Nunnally (1978). As indicated in Table

4.8.2, the data collected are statistically robust, and the items scale (K1-10) has a

satisfactory internal reliability for undertaking future statistical analysis.

Further analysis of the independent variables revealed a high level of correlation

among trust, incentive systems, and training for workers. The Pearson’s correlation

coefficient of .680 between knowledge sharing and trust is shown in Table 4.9.5b.

While Pearson’s correlation of .649 was found between knowledge sharing and

incentive systems at a significance level of .05 vs. .01 level in both participations in

trust and incentive systems were highly positively related to knowledge sharing and

training for workers.

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The significant correlations between the supporting AMO model may provide some

indications of the correlations among ability (training for workers), motivation

(incentive systems), opportunity(trust), and knowledge sharing as well as FCBs;

specifically, incentive systems and trust were more highly associated to knowledge

sharing. As stated in Chapter 3, the impact of AMO model on knowledge sharing will

be used for hypothesis testing in the following section.

4.9.5 Discriminant and Construct validity

Discriminant validity refers to the degree to which two variables are statistically

distinct from each other (Yau et al. 1998; Malhotra 2009). Discriminant validity may be

achieved when various latent factors via a cross-correlation between the various

indicators individually are not too high, just fairly strong (Kline 1998; Abbad, Morris

and De Nahlik 2009). The acceptable cut off level (the correlation coefficient), r of .85

is accepted generally for evaluating discriminant validity (Hultén 2007). Moreover, the

correlations between indicators must not be over their reliability estimates, i.e. the

coefficient alpha of each scale (Gaski and Nevin 1985; O'Cass and Grace 2008).

As such, the coefficients of correlation between Cronbach’s Alpha of the measured

constructs were shown in Table 4.9.5b. The correlation coefficients are shown in the

diagonal of lower matrix. Each of these coefficients were not over .85, so all

constructs were not significantly correlated. Further, the bolded values, namely

Cronbach’s Alpha, were on the diagonal, and they exceeded the correlation

coefficients shown in Table 4.9.5b. The above evidence verified construct validity.

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Table 4.9.5 Correlations of Factors in this Study

Correlations

AQ ATW AIS AT AK

AQ

Pearson Correlation 1

Sig. (2-tailed)

N 119

ATW

Pearson Correlation .133 1

Sig. (2-tailed) .148

N 119 119

AIS

Pearson Correlation .129 .766** 1

Sig. (2-tailed) .162 .000

N 119 119 119

AT

Pearson Correlation .155 .633** .734** 1

Sig. (2-tailed) .093 .000 .000

N 119 119 119 119

AK

Pearson Correlation .045 .592** .649** .680** 1

Sig. (2-tailed) .626 .000 .000 .000

N 119 119 119 119 119

** Correlation is significant at the .01 level (2-tailed).

Based on the results from this preliminary analysis, all measured constructs achieved

satisfactory validity and reliability and fulfilled regression analysis assumptions. On this

basis, they are suitable for hypotheses testing, which is discussed in the next section.

4.10. Hypothesis Testing

As indicated earlier in Chapter 3, the study’s six hypotheses were tested. After

carrying out tests for validity and reliability, the data collected were subjected

to hypothesis testing, and the results are shown in Table 4.10a.

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Table 4.10a Multicollinearity Test Results in Model 1

Coefficients

a. Dependent Variable: DV: Knowledge Sharing

The result of Model 1 (i.e., Training for Workers, Incentive Systems, and Trust)

are significant, VIF was not significant as VIF is between 2.505 to 3.268 which

is less than 10. Hence there are no multicollinearity issues and the null

hypothesis is rejected.

Standardized

Coefficients

B Std. Error Beta Tolerance VIF

(Constant) 1.151 0.290 3.976 0.000

Scale: Worker for Training

(TW1-TW5)

0.140 0.078 0.177 1.794 0.075 0.399 2.505

Scale: Incentive Systems

(IS1-IS5)

0.199 0.093 0.240 2.133 0.035 0.306 3.268

Scale: Trust (T1-T6) 0.373 0.085 0.409 4.394 0.000 0.448 2.233

1

Model

Unstandardized Coefficients

t Sig.

Collinearity Statistics

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Table 4.10b Multicollinearity Test Results in Model 2

Coefficients

*p<.10, **p<.05, ***p<.01

The second model presented totally different outcomes as a result of the

interactions (i.e. training for workers, incentive systems, and trust). The VIF

values were not significant except for trust, thus causing a multicollinearity

problem. Most common misunderstanding that exists here is that X

(independent variable) and M(Moderator) are likely to be highly correlated

with XM and thus an estimation problem may be created by multicollinearity

which results in poor estimates of regression coefficients, big standard errors,

and reduced power of the statistical tests of the interaction. To address the

multicollinearity issue, the Process Macro for SPSS for Linear Regression

Analysis was used (Hayes, 2013). Process Model 2 was used, with three runs

undertaken to establish the moderation effects across the model.

In order to address the issue of high multicollinearity, a bootstrap analysis was

generated with 1,000 iterations for bias-correction. To test whether FCBs

moderate the effect of AMO factors on knowledge sharing (KS), the model for

KS was built in steps. KS was then estimated from ATW_x_AQ (Training and

Standardized

Coefficients

B Std. Error Beta Tolerance VIF

(Constant) 1.084 0.297 3.649 0.000

Scale: Training for workers

(TW1-TW5)

0.085 0.153 0.107 0.554 0.581 0.103 9.701

Scale: Incentive System (IS1-

IS5)

0.371 0.187 0.449 1.979 0.050 0.075 13.279

Scale: Trust (T1-T6) 0.311 0.147 0.341 2.117 0.037 0.149 6.690

Interaction: AQ (FCB) x ATW

(Worker Training)

0.042 0.083 0.242 0.502 0.617 0.017 59.830

Interaction: AQ (FCB) x AIS

(Incentive System)

-0.090 0.087 -0.528 -1.030 0.305 0.015 67.891

Interaction: AQ (FCB) x AT

(Trust)

0.029 0.064 0.171 0.456 0.649 0.028 36.128

2

Model

Unstandardized

Coefficients

t Sig.

Collinearity Statistics

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FCBs) and for any additional variables of interest other than ATW_x_AQ, we

created various covariates and so forth. Independent variable (X) and

Moderator (M) were added. Furthermore, two other AMO factors used as

covariates that were plugged into the model along with ATW_x_AQ. The

convention is to use the means of the covariates. The value plugged into the

model for the covariates ended up merely adding or subtracting from the

regression constant, depending on the signs of the regression coefficients for

the covariates, thus affecting the overall KS results. Hypothesis 2 (H2.1, H2.2,

and H2.3) was examined by Process Macro in SPSS after Hypothesis 1 (H1.1,

H1.2 and H1.3).

For testing Hypothesis 1 (H1.1, H1.2 and H1.3), the univariate linear regression

analysis was utilized to test the impact of independent variables (i.e., training for

workers, incentive system and trust) on the dependent variable (i.e., knowledge

sharing) and the moderating effect of FCBs. Figure 4.10 below presents the main

hypothesized relationships.

Figure 4.10. Operational Model: Key Hypothesized Relationships between AMO

Factors and Knowledge Sharing.

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4.10.1 Hypothesis 1.1

H1.1 proposes that training for workers is positively related to knowledge

sharing in the HKCI. Menkhoff et al. (2005) reported the prevalence of

knowledge-sharing practices and training for workers within firms.

Figure 4.10.1: Operational Model for Ability (Training for Workers) and

Knowledge Sharing

The result suggests that training for workers has a marginal and moderately

significant impact on knowledge sharing, and that such influence is positive

(b= .140, p>.10), and the results shown in Table 4.10a. Thus, H1.1 is

supported.

4.10.2 Hypothesis 1.2

H1.2 proposes that incentive systems are positively associated with

knowledge sharing in the HKCI. Rewards can motivate employees to share

their knowledge within an organizational or a group setting. Rewards can

come in the form of monetary incentives (extrinsic) and non-monetary

(intrinsic) rewards (Bartol and Srivastava, 2002). The Operational model

tested for this hypothesis is shown in Figure 4.10.2 below.

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Figure 4.10.2: Operational Model for Motivation (Incentive systems) and

Knowledge Sharing

The result suggests that incentive systems have a positive influence on

knowledge sharing (b= .199, p<.05), and the results are shown in Table 4.10a.

Thus, H1.2 is supported.

4.10.3 Hypothesis 1.3

H1.3 proposes that Trust is positively associated with knowledge sharing in

the HKCI (Figure 4.10.3).

Figure 4.10.3: Operational Model for Opportunity (Trust) and Knowledge

Sharing.

The results demonstrate that trust has a positive impact on knowledge

sharing. Trust has a positive influence on knowledge sharing (b=.373, p<.001),

and the results shown in Table 4.10a. Thus, H1.3 is supported.

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Furthermore, when knowledge sharing was evaluated by AMO model, with

the result of (R²=.56 explains that AMO could be statistically significant in

interpreting 56 percent of variance towards knowledge sharing. (Shown in

Table 4.10.3)

Table 4.10.3 Model Summary

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 .747a .558 .546 .73127

a. Predictors: (Constant), AT, ATW, AIS

4.11. Process macro in SPSS for B analysis

The moderating effect can be tested by Process Macro in SPSS (Hayes, 2013).

In the current research, FCBs has a moderating effect between AMO factors

and KS, in that FCBs and each of the AMO factors interact and influence KS.

Such interaction was examined in the current study. The outcomes helped

identify the moderating effect of knowledge sharing.

Referring to Table 4.10b, the coefficients indicates multicollinearity scores. VIF

of Model #1 for each AMO factor is within tolerance. Model #2, which

includes interactions input results in a very high VIF for each scale (e.g. ATW

9.7 is high and nearly at the edge of the tolerance; AIS 13.27 is the highest and

out of tolerance; only the VIF values for trust of 6.69 is in the safe zone). The

high VIF out of tolerance zones is considered risky and it may impede the

process of obtaining reliable regression analysis results (Belsley et al., 1980;

Hair et al., 1995, O’Brien, 2007). Therefore, the process macro adopted a

bootstrap analysis, using 1,000 iterations and bias-correction to solve the

problems of high multicollinearity.

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4.11.1. Hypothesis 2.1

As shown in Figure 4.11, H2.1 proposes that FCBs act as a moderating factor in

the correlation between training for workers and knowledge sharing.

Figure 4.11.1 Operational Model for Ability (Training for Workers) and FCBs

Table 4.11.1a Model Summary in between training for workers and FCBs

Looking first to H2.1, the regression analysis result shows the moderating

impact of FCBs in Table 4.11.1a, on training for workers (ATW) and knowledge

R R² F df1 df2 p

Outcome: AK .76 .58 36.80 5.00 112.00 .00

Model = 2

b se t p LLCI ULCI

constrant 1.70 .45 3.83 .00 .82 2.59

FCBs -.04 .06 -.72 .47 -.15 .07

Training for workers .12 .09 1.23 .22 -.07 .30

FBCs x Training for

workers -.10 .05 -2.07 .04 -.20 .00

Y= Knowledge

sharing

X= Training for

workers M= FCBs

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sharing, and is represented by the regression coefficient for the interaction of

FCBs and ATW (termed as ATW x AQ). Such a coefficient is negative and

statistically significant (i.e.²=.58, b= –.10, t (112) = –2.07, p=.04<.05,) Thus, the

impact of ATW on KS depends on FCBs. However, the relationship is negative,

thus implying that training for workers has a negative impact on knowledge

sharing in FCBs. (R² change=.02) which represents an increase of 2%

following the interaction term.

Table 4.11.1b Conditional effect of Training for workers (X) and Knowledge

sharing (Y) at values of FCBs (M)

In order to interpret the moderating effect, the simple slopes were examined.

When the values for FCBs are low, there is a significant positive relationship

between training for workers and knowledge sharing (b=.22, p=.04<.05).

When FCBs are average, there is no significant relationship. (b=.12,

p=.22>.05). Similarly, when FCBs are high, there is a non-significant

relationship between incentive systems and knowledge sharing (b=.00,

p=.98>.05). These results tell us that the relationship between training for

workers and Knowledge sharing only really emerges in firm with low levels of

FCBs.

FCBs Effect se t p LLCI ULCI

Low -1.01 .22 .11 2.07 .04 .01 .43

Average .00 .12 .09 1.23 .22 -.07 .30

High 1.14 .00 .11 -.02 .98 -.22 .22

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Table 4.11.1c Conditional effect of Training for workers(X) on Knowledge sharing (Y) at values of FCBs (M) (Johnson-Neyman significance region(s))

FCBs Effect se t P LLCI ULCI

-1.01 .22 .11 2.07 .04 .01 .43

-.86 .20 .10 1.98 .05 .00 .41

-.81 .20 .10 1.95 .05 .00 .40

-61 .18 .10 1.81 .07 -.02 .37

-.41 .16 .10 1.65 .10 -.03 .35

-.21 .14 .09 1.46 .15 -.05 .32

-.01 .12 .09 1.25 .21 -.07 .30

.19 .10 .09 1.02 .31 -.09 .28

.39 .08 .10 .79 .43 -.11 .27

.59 .06 .10 .56 .58 -.14 .25

.79 .03 .10 .34 .74 -.17 .24

.99 .01 .11 .13 .90 -.20 .22

1.19 -.01 .11 -.06 .95 -.23 .21

1.39 -.03 .12 -.23 .82 -.26 .20

1.59 .-05 .12 -.39 .70 -.29 .'20

1.79 .-07 .13 -.53 .60 -.33 .19

1.99 .-09 .14 -.65 .52 -.36 .18

2.19 -.11 .14 -.76 .45 -.40 .18

2.39 -.13 .15 -.86 .39 -.43 .17

2.59 -.15 .16 -.94 .35 -.47 .17

2.79 -.17 .17 -1.02 .31 -.50 .16

2.99 -.19 .18 -1.09 .28 -.54 .16

Refer to the Label 4.11.1c, the output of the John-Neyman method provides another

approach to explain the simple slopes result. Looking at the b-values we can see that

the relationship between training and knowledge sharing emerges only when FCBs

scores are low. The result is consistent with Table 4.11.1b- conditional effect of

Training for workers (X) and Knowledge sharing (Y) at values of FCBs (M).

4.11.2. Hypothesis 2.2

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As shown in Table 4.11.2, H2.2 proposes that FCBs act as a moderating factor

in the correlation between incentive systems and knowledge sharing.

Figure 4.11.2 Operational Model for Motivation (Incentive Systems) and

FCBs

Table 4.11.2a Model Summary in between incentive systems and FCBs

The regression analysis for H2.2 states the moderating impact of FCBs on

incentive systems (AIS) and knowledge sharing, is represented by the

R R² F df1 df2 p

Outcome: AK .77 .59 .51 38.80 112.00 .00

Model = 2

b se t p LLCI ULCI

constrant 2.22 .56 3.94 .00 1.10 3.33

FCBs -.04 .06 -.78 .43 -.16 .07

Incentive systems .22 .12 1.88 .06 -.01 .45

FBCs x Incentive

systems -.12 .05 -2.55 .01 -.22 -.03

Y= Knowledge

sharing X= Incentive systems M= FCBs

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regression coefficient for the interaction between FCBs and AIS (termed as AIS

x AQ). Such a coefficient is negative and statistically significant (i.e., R²=.59,

b= -.12, t (112) =-2.55, p=.01<.05,) Thus, the impact of AIS on KS is moderated

by FCBs. However, as the interaction term is negative, it implies that with low

levels of FCBs, incentive systems will have a positive impact on knowledge

sharing. (R² change=.03) which represents an increase of 3% after

interaction term.

Table 4.11.2b Conditional effect of Incentive systems (X) and Knowledge

sharing(Y) at values of FCBs (M)

When level of FCBs are low, there is a significant and positive relationship

between incentives and knowledge sharing (b=.34, p=.01<.05). When FCBs are

average, there is a non- significant relationship between incentives for

workers and knowledge sharing. (b=.22, p=.06>.05). Similarly, when the FCBs

value is high, there is a non-significant relationship as well (b=.08, p=.51>.05).

These results tell us that the relationship between incentive systems and

knowledge sharing emerges only with lower levels of FCBs.

FCBs Effect se t p LLCI ULCI

Low -1.01 .34 .14 2.53 .01 .07 .61

Average .00 .22 .12 1.88 .06 -.01 .45

High 1.14 .08 .12 .66 .51 -.15 .31

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Table 4.11.2c Conditional effect of Incentive systems (X) on Knowledge sharing(Y) at values of FCBs (M) (Johnson-Neyman significance region(s)

FCBs Effect se t P LLCI ULCI

-1.01 .34 .14 2.53 .01 .07 .61

-.81 .32 .13 2.44 .02 .06 .58

-61 .29 .13 2.33 .02 .04 .54

-.41 .27 .12 2.21 .03 .03 .51

-.21 .24 .12 2.06 .04 .01 .48

-.12 .23 .12 1.98 .05 .00 .47

-.01 .22 .12 1.89 .06 -.01 .45

.19 .20 .11 1.71 .09 -.03 .42

.39 .17 .11 1.51 .13 -.05 .40

.59 .15 .11 1.29 .20 -.08 .37

.79 .12 .11 1.07 .29 -.10 .35

.99 .10 .12 .84 .40 -.13 .33

1.19 .07 .12 .61 .54 -.16 .30

1.39 .05 .12 .39 .70 -.19 .29

1.59 .02 .12 .18 .86 -.22 .27

1.79 .00 .13 -.02 .99 -.26 .25

1.99 -.03 .13 -.20 .84 -.29 .24

2.19 .-05 .14 -.37 .71 -.33 .22

2.39 -.08 .14 -.53 .60 -.36 .21

2.59 -.10 .15 -67 .50 -.40 .20

2.79 -.13 .16 -.80 .43 -.44 .19

2.99 -.15 .16 -.92 .36 -.48 .17

Looking at the b-values shown on Table 4.11.2c, John-Neyman method

provides statistical b-values that the relationship between incentive systems

and knowledge sharing emerges only when FCBs scores are low. The result is

consistent with Table 4.11.2b –conditional effect of Incentive systems (X) and

Knowledge sharing (Y) at values of FCBs (M).

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4.11.3. Hypothesis 2.3 (H2.3)

As shown in Table 4.11.3, H2.3 proposes that FCBs positively act as a

moderating factor in the relationship between trust and knowledge sharing

(Figure 4.11.3).

Figure 4.11.3 Operational Model for Opportunity (Trust) and FCBs

Table 4.11.3a Model Summary In between Trust and FCBs

R R² F df1 df2 p

Outcome: AK .77 .59 44.11 5.00 112.00 .00

Model = 2

b se t p LLCI ULCI

constrant 2.79 .51 5.42 .00 1.77 3.81

FCBs -.03 .06 -.53 .59 -.14 .08

Trust .28 .11 2.51 .01 .06 .50

FBCs x Trust -.17 .06 -2.87 .00 -.29 -.05

Y= Knowledge

sharing X= Trust M= FCBs

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The regression analysis for H2.3 states the moderating impact of FCBs on trust

(AT) and knowledge sharing, is represented by the regression coefficient for

the interaction of FCBs and Trust (termed as AT x AQ). Such a coefficient is

negative and statistically significant (i.e. R²=.59, b= -.17, t (112) =-2.87,

p=.00<.01). Thus, the impact of AT on KS is moderated by FCBs. However, as

the interaction effect is negative, it implies that only when the values of FCBs

are low, the relationship between trust and knowledge sharing is positive. (R²

change=.3) which represents a 3% increase after the interaction effects.

Table 4.11.3b Conditional effect of Trust (X) and Knowledge sharing (Y) at

values of FCBs (M)

When level of FCBs are low, there is a significant and positive relationship

between trust and knowledge sharing (b=.45, p=.00<.01). When FCBs are

average, there is significant positive relationship as well (b=.28, p=.01<.05).

When FCBs are high, there is a non-significant relationship between trust and

knowledge sharing (b=.08, p=.59>.05). These results tell us that the significant

and positive relationship between trust and knowledge sharing only really

emerges in firm with low or average levels of FCBs.

FCBs Effect se t p LLCI ULCI

Low -1.01 .45 .10 4.49 .00 .25 .65

Average .00 .28 .11 2.51 .01 .06 .50

High 1.14 .08 .15 .54 .59 -.22 .39

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Table 4.11.3c Conditional effect of Trust (X) on Knowledge sharing (Y) at

values of FCBs (M)

(Johnson-Neyman significance region(s)

FCBs Effect se t p LLCI ULCI

-1.01 .45 .10 4.49 .00 .25 .65

-.81 .42 .10 4.18 .00 .22 .62

-.61 .38 .10 3.81 .00 .18 .59

-.41 .35 .10 3.40 .00 .15 .56

-.21 .32 .11 2.97 .00 .10 .53

-.01 .28 .11 2.53 .01 .06 .50

.19 .25 .12 2.12 .04 .02 .48

.26 .24 .12 1.98 .05 .00 .47

.39 .21 .12 1.73 .09 -.03 .46

.59 .18 .13 1.37 .17 -.08 .44

.79 .15 .14 1.05 .30 -.13 .42

.99 .11 .15 .75 .45 -.18 .40

1.19 .08 .16 .49 .62 -.23 .39

1.39 .04 .17 .26 .80 -.29 .37

1.59 .01 .18 .05 .96 -.34 .36

1.79 -.03 .19 -.14 .89 -.39 .34

1.99 -.06 .20 -.31 .76 -.45 .33

2.19 -.09 .21 -.46 .65 -.50 .31

2.39 -.13 .22 -.60 .55 -.56 .30

2.59 -.16 .23 -.72 .47 -.61 .29

2.79 -.20 .24 -.83 .41 -.67 .27

2.99 -.23 .25 -.93 .35 -.72 .26

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Refer to the Table 4.11.3c, the output of the John-Neyman method provides

another approach to explain the simple slope results. Looking at the b-values

we can see that the relationship between trust and knowledge sharing

emerges only when the FCBs scores are low. The result is consistent with

Table 4.11.3b–conditional effect of Trust (X) and Knowledge sharing (Y) at

values of FCBs (M).

4.12 Simple slope analysis

Figure 4.12 Simple Slope Result for AMO Factors and FCBs

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As shown in Figure 4.12, H2.1, H2.2, and H2.3 propose that FCBs acts as a

moderating factor influencing the effects of training for workers, incentive

system, and trust on knowledge sharing. For average levels of FCB, there is

not much impact noted. However, for lower values of FCBs (family members

involvement levels), a significant and positive relationship between the AMO

factors and knowledge sharing is observed. The results are consistent as for

these conditional effects of X on Y values through the moderator as clearly

shown in the Johnson-Neyman test.

4.13 Summary of hypothesis testing

The empirical results of the data analysis confirm that H1.1, H1.2, and H1.3 are

positively associated with having a direct effect on the knowledge sharing. H2.1, H2.2,

and H2.3 are significant as confirmed by the linear regression analysis results. As we

can see, this additional variable (FCBs), which is described as a moderator, can help

demonstrate that the knowledge sharing performance is influenced by the effect of

the other independent variable (AMO factors). Further, the findings suggest that FCBs

serve as a moderating variable between the AMO factors and knowledge sharing. This

finding is consistent with results reported by prior studies, i.e., FCBs are an additional

variable and that the characteristics of individuals influence the outcome of knowledge

sharing performance as they respond to an experimental manipulation (Baron and

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Kenny,1986; Pallant, 2001). The findings and test results are summarized in Table 4.13

below.

Table 4.13: Summary of Hypotheses Test Results

*p<.10, **p<.05, ***p<.01

4.14 Chapter Summary

This research provides empirical support for the hypothesized relationships

and found both theoretical and practical contributions from this study.

Theoretically, the AMO model can be utilized to demonstrate the importance

of ability (training for workers), motivation (incentive systems for staff) and

opportunity (trust among co-workers) on knowledge sharing. More

specifically, the results of H1.1, H1.2, and H1.3 support the positive

Hypothesis Description of Hypothesis Sig. Result

H1.1 In the HKCI, Training for Workers is positively associated with Knowledge Sharing

.075 Marginal supported

H1.2 In the HKCI, Incentive Systems is positively associated with Knowledge Sharing

.035 Supported

H1.3 In the HKCI, Trust is positively associated with Knowledge Sharing

.000 Strongly Supported

H2.1 In the HKCI, FCBs acts as a moderating factor in the relationship between Ability (Training for Workers) and Knowledge Sharing

.04 Supported

H2.2 In the HKCI, FCBs acts as a moderating factor in the relationship between Motivation (Incentive Systems) and Knowledge Sharing

.01 Supported

H2.3 In the HKCI, FCBs acts as a moderating factor in the relationship between Opportunity (Trust) and Knowledge Sharing

.00 Strongly Supported

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relationship between the AMO factors on both formal and informal

knowledge sharing processes. Although there is high multicollinearity

between all interaction variables (for moderation effect) in the regression

model, the results of H2.1, H2.2, and H2.3 proved that the moderating effects

are significant. The analysis was conducted following Process Macro steps

(Hayes, 2013). The moderator and the independent variables interact to cause

a performance change in the dependent variable (knowledge sharing

behaviour) (Baron and Kenny, 1986; Winer, 1971). Chapter 5, the final chapter

of this thesis presents further discussion and conclusion of the study’s findings

and limitations and suggestions for future research.

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Chapter 5

Discussion and Conclusion

5.1 Introduction

This final chapter presents a discussion based on the findings of this study and

concludes with implications for theory and practice. The three independent variables,

namely, ability (training for workers), motivation (incentive systems), and opportunity

(trust), along with the moderating variable (FCB/Non-FCB firms) and a dependent

variable (formal and informal) knowledge sharing were the foci of this study. The study

adopted a questionnaire design consisting of the above constructs, which have already

been well-developed in the extant literature (Chua et al., 2004; Wong & Aspinwall,

2005; Mooradian, 2006; Zahra, 2007). The questionnaire employed in this study had a

total of 26 items.

The study’s contributions in terms of theoretical and managerial implications are

discussed in final section of this chapter, highlighting the significance of this research

and the investigated research problem. This chapter concludes by discussing the

limitations of this research and identifying areas for further study.

5.2 Major findings

As stated in Chapter 4, this research aimed at determining whether there is a

moderating influence of the impact of FCBs on key variables of the AMO model and

knowledge-sharing practices in the HKCI.

Building on Zahra et al.’s (2007) and using Salis & Williams’s (2010) AMO model, this

study investigated the moderating effects of FCBs on AMO factors and knowledge

sharing in the HKCI. The literature on human resource management highlights the

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importance of training for workers, incentive systems, and trust factors in improving a

system’s performance (Boselie, 2010). These factors have also been found to be

positively related to the key components of knowledge-sharing performance in the

context of HKCI. The study’s research model explicitly shows that there exist two

components of knowledge sharing: informal knowledge and formal knowledge.

Accordingly, six hypotheses were tested through a quantitative approach for assessing

the impacts of FCBs, ability (training for workers), motivation (incentive systems), and

opportunity (trust) on the knowledge sharing-performance (formal and informal

knowledge) of firms in the HKCI.

5.3 Research framework

Based on the findings outlined in the previous chapter, this chapter provides a

discussion of each hypothesis. The impact among all relevant variables were tested by

analysing data using SPSS (ver. 22).

Figure 5.3 AMO Factors applied to Knowledge Sharing and are Individually Moderated

by FCBs

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5.4. Discussion of findings

The hypothesized relationships were tested using regression analysis (Bock and Kim,

2001) and the data analysis confirms that H1.1, H1.2, and H1.3 are supported. Hence,

the relationship between ability (training for workers), motivation (providing incentive

systems), and opportunity (creating an environment of trust) and intention to share

knowledge in the HKCI is positive and significant and duly supported by the data.

(H1.1): In the HKCI, training for workers is positively related to knowledge sharing.

The results (b =.140, p = .075 <.10) indicate that training for workers. Although the

result is marginal significant it has a moderate positive influence on knowledge sharing.

Few researchers in the social sciences have demonstrated that the interaction effects

in real data commonly interpret between 1% and 3% of the variance in the dependent

variable (Campout and Peters, 1987). Thus, interactions interpreting even 1% of the

variance is also meaningful (Abelson, 1985; Evans, 1985; McClelland & Judd, 1993). To

maximize the power of detecting moderator effects, some researchers have adopted

the large sample sizes to achieve higher research reliability (Stone–Romero &

Liakhovitski, 2002). The result is similar i.e. positive as compared to earlier studies

(Aragón-Sánchez, 2003; Cabrera & Cabrera, 2005; Wong & Aspinwall, 2005), that have

argued that training programs can increase levels of employee self-efficacy positively.

Aragón-Sánchez (2003) also noted similar findings. Training in communication skills may

help employees to exchange information and knowledge effectively.

(H1.2): In the HKCI, implementing incentive systems is positively related to

knowledge sharing.

The results (b= .199, p = .035 <.05) indicate that incentive systems have a

statistically significant and positive relationship with knowledge sharing.

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Contrary to prior study, Bock, & Kim, (2003) argued that rewards may

discourage employees towards knowledge sharing because incentive systems

may be a substitute given to staff for good individual level performance. The

result for H1.2 provides empirical evidence to support that incentive systems is

a significant predictor of knowledge sharing performance and consistent with

some of the earlier reported studies (Sharratt & Usoro, 2003; Wong &

Aspinwall, 2005), wherein it was advocated that higher levels of reward have a

greater impact on knowledge-sharing behaviour. This finding supports a

positive relationship between incentive systems and knowledge sharing in the

HKCI. Therefore, designing incentive and reward systems is vital in providing

new opportunities to learn and actualize one’s full potential ( Sharratt & Usoro,

2003; Wong & Aspinwall, 2005).

Offering rewards is an effective way to motivate employees of a firm to share their

knowledge with one another (Bartol & Srivastava, 2002). Experienced employees,

however, believed that there may be a negative attitude toward receiving benefits in

return for knowledge sharing performance as it is considered as a normal business

activity (Bock & Kim, 2001). Given the predicted impact of the perceived benefits of

knowledge sharing, incentive systems may thus be designed to encourage knowledge-

sharing behaviours. The incentive systems may include aspects such as individual

appraisal with rating systems for performance evaluation, bonus and salary increments,

promotions, and so on. The results are consistent with earlier studies and theoretical

arguments, which supports the positive correlation between incentive systems and

knowledge sharing (Wong & Aspinwall, 2005; Sharratt & Usoro, 2003).

(H1.3): In the HKCI, trust is positively related to knowledge sharing.

Similar findings exist for this factor and as such H1.2 is supported. The results show a

positive impact between trust and knowledge sharing in the HKCI. The analysed data

support the findings that trust is a critical factor influencing knowledge sharing in the

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HKCI. It is also in line with extant literature on the topic (Chiu & Wang, 2006; Politis,

2003; Mooradian, 2006).

This is evident in the results (b= .373, p.000 < .05) and that trust has the strongest

statistical significance of individual coefficients as compared to training for workers and

incentive systems, and that trust has a statistically positive relationship with the

dependent variable–knowledge sharing.

The findings from this study suggest that trust is the strong factor that can affect

knowledge-sharing behaviour in HKCI. These results are consistent with previous

studies (Brann & Foddy, 1988; Hansen, 1999 ; Epstein, 2000; Foos et al., 2006),

especially in terms of informal knowledge sharing.

Major findings

Finding one: The relationship between the AMO factors and knowledge sharing in

HKCI firms is significant except training for workers. The results of H1.2, and H1.3

support the notion that the incentive systems and trust affect knowledge sharing.

The results of H2.1, H2.2, and H2.3 are all significant (p < .05) (Aiken and West, 1991).

The specific characteristics of FCBs differ significantly from those of non-FCBs (Judge &

Douglas, 1998; Porter & Van de Linde, 1995; Room, 1994; Srivastava, 1995). Ding et al.

(2008) stated that FCBs have clear strategic direction to influence the operational

aspects within their firms. The empirical findings of the current study support this

notion, and are consistent with the findings of prior research, which found that FCBs

positively influence knowledge sharing in HKCI.

Finding two: The b values for hypotheses (H2.1) b = -.10, (H2.2) b= -.12, (H2.3) b= -.17

indicate statically significant relationships with negative impact of the interaction

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effects of FCBs, respectively, with the independent variables of training for workers,

incentive systems and trust and predictor variable of knowledge sharing. Therefore, it

follows that with low values of FCBs the relationship between the AMO factors and

knowledge sharing is positive and significant. This may be explained by the specific

characteristics of FCBs, namely, the centralization of control and ownership via

paternalism and personalized management in eastern characteristics (Yeung, 2014).

Refer to prior studies (Fisher & Howell, 2004; Lengnick-Hal & Moritz, 2003),

paternalism and personalized culture can create a negative impact on knowledge

sharing.

5.5 Moderating effect of FCBs

According to AMO Model (Appelbaum et al., 2000; Salis and Allan, 2008), AMO factors

influence the knowledge sharing performance. Zahra et al., 2006 found that knowledge

sharing can be influenced by the family involvement in the top management. Many

researchers have examined the FCBs moderating power effect (Aragon-sanchez, 2003;

Lin, 2007; Zahra, 2006) and suggested that FCBs may buffer the impact of AMO factors

individually. The results for hypotheses (H2.1) b = -.10, p<.01, (H2.2) b= -.12, p<.01,

(H2.3) b= -.17, P<.1 indicated statically significant relationships with negative impact for

training for workers, incentive systems and trust, in which the results from H2.1, H2.2,

H2.3 may be interpreted that knowledge sharing will be lowered by FCBs.

This is also reflected in (H2.1) wherein 58 percent of the variance (R²=. 58) in knowledge

sharing is explained. (R² change= .02) 2 percent is increased due to interactions in

between Training for workers and FCBs. Similarly, when knowledge sharing relationship

is analysed with incentive systems in (H2.2), 59 percent of the variance (R²= .59) is

explained. An R²change of .03 or 3 percent is increased due to interaction in between

Incentive systems and FCBs. The result of (H2.3) remains the same (R²=.59) as (H2.2)

towards knowledge sharing. An R2 change of .03 yields the same result as for H2.2.

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Stone-Romero and Liakhovitski (2002) stated that the moderating effect is normally low

due to the small effect sizes, a one percent variance of a moderating effect is still

considered meaningful. Abelson (1985) and McClelland and Judd (1993) found that the

power of moderating effects may be higher subject to bigger sample sizes.

H2.1: In the HKCI, FCBs act as a moderating factor in the relationship between training

for workers and knowledge sharing.

The results support the assumption that FCBs impact on knowledge-sharing behaviour

when training for workers is provided. FCBs play a critical role in influencing knowledge-

sharing behaviour in firms. Contrary to expectation, FCBs have a negative moderating

effect such that low values of FCBs will increase the strength of the relationship

between training for workers and knowledge sharing. The result is consistent with an

earlier finding such as Kotey (2007) and Aragon-sancher (2003). The present study

results support the prior researches that the family characteristics such as paternalistic

leadership style(Chirico & Norqvist, 2010),informal and loosely structured management

(Redding, 1979, 1984) of FCBs are the reason, This approach cause the negative impact

for training performance , especially informal knowledge.FCBs tend to recruit less

competent relatives for management position because of “ family obligations” and need

to develop harmonious relations with each family member (Dholakia, 2002) .

Given that the sample effect size is small, values are typically low in the results of

moderation analyses (Aiken & West, 1991; Stone-Romero & Lobachevski, 2002). The

causal regime is structured into the data; hence, it is possible to assess the degree to

which various modelling approaches produce accurate coefficient estimates. In the

present study, using Process Macro in SPSS by bootstrapping the sample size and

increase it from 100 to 1000 (Hayes, 2013). This is based on the assumption that the

larger the sample size is, the smaller the standard errors produced. Thus, in this study,

FCBs act as a moderator in explaining knowledge sharing, that is, FCBs not only interact

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with each independent variable, but are also impact the predictor variable of knowledge

sharing (McArthur and Nystrom, 1991).

To maintain business performance, providing training for workers, as well as

advancements in skills and technologies is likely to enhance a firm’s performance

through knowledge sharing behaviour. Providing training for workers is more critical in

FCBs than in non-FCBs as they effectively manage knowledge sharing from both a top-

down and a peer-to-peer perspective (Hansen & Oetinger, 2001).

H2.2: In the HKCI, FCBs act as a moderating factor in the relationship between

incentive systems & knowledge sharing.

This study indicates that the addition of the interaction between incentive systems and

FCBs can help explain the variance between knowledge sharing. Thus, H2.2, which is

consistent with previous findings (Zahra; 2010), is also supported.

Skulski (1996) reported that individual is reluctant to share crucial knowledge because

the fear of losing their privileged position, ownership, authority, and superiority.

Successful incentive systems are an effective way to motivate individual, especially

those who are willing to share their knowledge, to facilitate knowledge sharing and

further improve business performance (Lee & Ahn, 2007). The emotional involvement

in FCBs may not a reason to motivate individual share knowledge, the findings is

contrary to Chirico and Nordqvist(2010) state, especially incentive systems need a fair

comments such as individual’s appraisal relate to rewards at their motivational levels

(Lacke, 1976).

The result is stronger in terms of statistical significance as compared to training for

workers hypothesis H2.1. FCBs have a stronger moderating effect in H2.2such that

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lower values of FCBs will increase the strength of the relationship between incentive

systems and knowledge sharing.

.

H2.3: In the HKCI, FCBs act as a moderating factor in the relationship between trust

and knowledge sharing.

This final hypothesis (H2.3) proposes that the relationship between trust and

knowledge sharing is moderated by FCBs in the HKCI. The interaction (AT_AQ) effects

were entered in Model 2 and the result indicates that when the interaction term was

added.

The result is the strongest in terms of statistical significance as compared to the other

two Hypotheses (H2.1 and H2.2). FCBs also have a moderating effect in H2.3, which

supports a significant relationship between trust and knowledge sharing, such that

lower values of FCBs will increase the strength of the relationship between trust and

knowledge sharing. This finding is consistent with prior results (Zahra, 2010; Zahra et

al., 2007). The present results indicate that lower involvement of FCBs will have a

stronger moderating effects between trust and knowledge-sharing behaviour. This may

be caused by lower involvement of FCBs, which may potentially inhibit such exchanges

(Zahra & Nielsen, 2002) through paternalistic values (Chirico and Nordqvist, 2010) and

centralization of power through the boss (Redding, 1979, 1984), the most valuable

information resides in a few closely associated family members and resistant to change

usually (Hall et al., 2001).

5.6 Theoretical implications

Scholars and practitioners interested in FCBs studies seek to gain new insights and

knowledge into the causal processes that underlie these firms (Lewin, 1940). The

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current study contributes to the understanding of knowledge sharing by identifying

several theoretical implications.

First, to the best of the student researcher’s knowledge, this study may be one of the

first attempts to examine the moderating role of FCBs on the relationship among AMO

factors and knowledge sharing, especially in the context of the HKCI. This study offers

important findings that identify the importance of the AMO model in knowledge sharing

and the moderating role of FCBs in HKCI. This is also vital in the creation of a conceptual

framework to stimulate understanding and guide the examination of knowledge

sharing, while also encouraging further research in this field.

Second, this study examines the antecedents of knowledge sharing in FCBs in Hong

Kong in a way that is consistent with the study of Zahra et al. (2006). Applying the AMO

model allows for evaluating the impact of individual AMO factors on knowledge sharing

through the moderating effects of FCBs. Empirical evidence demonstrates statistically

significant positive relationships AMO factors have with knowledge sharing behaviours.

Third, the AMO model is a widely accepted model in studies of high performance

through HRM practices in previous studies (Appelbaum et al., 2000; Sergio & Williams,

2008; Nisha and Wickramasinghe, 2016). For the current study, a particularly helpful

aspect of the AMO model is that it assumes the presence of all factors in influencing

knowledge sharing with FCBs for inducing a moderating effect. Based on the results,

AMO can be an important model for explaining the knowledge-sharing behaviour in

firms (Bock & Kim, 2001). What follows from the findings is that if a set of high HRM

practices are implemented as a bundle, then this is likely to explain the presence of

knowledge sharing behaviours.

Fourth, using the Process Macro analysis in SPSS shows that the moderating effect of

FCBs for each of the AMO factors of training for workers (marginal statistical

significance), compared to other factors of incentive systems and trust. Trust has the

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strongest effect (higher than training for workers and incentive systems). This finding

gives rise to several management implications.

Finally, this study formulated a conceptual framework and tested theories from

knowledge-sharing and AMO factors. This study can form the basis for researchers to

conduct additional research in different industry contexts as well as considering a wider

range of AMO practices that have been identified in the HRM high-performance work

systems stream to advance scholarship in this field.

5.7 Managerial implications

The findings of this study raises several implications for practice. First, managers in the

HKCI should offer training for workers to improve their understanding of knowledge

management processes, marketing, competition and technological trends, and team

building, to realise better knowledge-sharing outcomes (Cabrera & Cabrera, 2005; Lin,

2007; Zahra et al., 2007). Thus, investing in training for workers is critical for future

success of FCBs and sustaining competitive advantages in rapidly their changing market

(Zahra, 2005). Measures, such as ISO900, to guide the implementation of standards in

training programs are needed.

Training programs may also provide incentives for enhancing team spirit, which, in turn,

can improve a firm’s positive culture and boost its performance (Fox & Guyer, 1979;

Kahan, 1973: Shih et al., 2006). Training programs such as team building, cross-training,

and harnessing technological developments, can increase the levels of cognitive,

structural, and relational social capital as well as stimulate knowledge-sharing

behaviours (Cabrera & Cabrera,2005; Kang et al., 2003). Different reports can be

generated for the purposes of management and marketing analyses.

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To build relationships, team-based trainings are important for the transfer of

knowledge (Fleishman, 1980; Axelrod, 1984 Van Lange et al., 1992; Cabrera & Cabrera,

2002). Cross-training also increases the interactions and allows for a common language

to enhance such interactions (Kramer & Brewer, 1984; Schneider, 1992; Cabrera &

Cabrera, 2002; Cabrera & Cabrera, 2005). Business managers not only seek to improve

business performance, but they also maintain a useful knowledge base for securing

future growth (Singh, 2008). Training to help people use the systems more efficiently

and for further reducing costs can be helpful (Cabrera & Cabrera, 2002).

Second, the implementation of incentive systems has been identified as influential

factor of the AMO model. Rewarding and recognizing these knowledge-sharing

behaviours sends a strong signal to the employees that the organization values

knowledge-sharing in FCBs (Cabrera & Cabrera, 2005). An incentive system,

incorporating extrinsic (e.g. Money, avoidance of punishment etc.) and intrinsic (praise)

rewards, (Foss et al., 2009), can motivate people to practice reciprocal behaviours of

knowledge sharing (Fehr & Fischbacher, 2002). Reciprocal behaviour is important,

because it affects the fundamental methods in the functioning of markets, firms,

incentives, and collective actions (Fehr & Fischbacher, 2002). However, some

researchers found that incentive systems may reduce any corresponding increases in

efforts as it can create a hostile atmosphere and even induce negative reciprocity

(Bewley, 1999; Fehr & Fischbacher, 2002).

Third, trust has been identified as an influential factor in fostering knowledge sharing

behaviours. Thus, it is critical for managers to improve and develop the strategy of

team building. Long-term relationships between managers and peers are needed to

improve the knowledge-sharing performance within firms. Trust can be improved by

team-building strategies to enhance employees’ willingness to share knowledge.

Employees may, through knowledge sharing, reduce the supervisor’s expert power

through team spirit and create a knowledge-sharing atmosphere in a firm. Trust can

also improve the efficiency of knowledge exchange and mutual understanding among

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peers, managers and staff, as proven by results between trust and knowledge sharing

(Abrams et al., 2003; Moravian et al., 2006), especially in FCBs.

Furthermore, Others have argued that trust is the least costly and the most effective

method to encourage people to share their knowledge (Dyer & Singh, 1998; Sharratt

& Usoro, 2003). For this reason, trust treats as a solution to motivate employee to

share knowledge. When individual views a firm as enhancing trustworthy values, such

as honesty, reliability and

mutual reciprocity, the commitment seems to be a greater standard of motivation to

share individual knowledge within that firm (Sharratt & Usoro, 2003). Thus, high levels

of interpersonal trust relates to high levels of willingness to share knowledge

(Kalantzis & Cope, 2003). If employees work in a trusting environment, wherein a firm

recognizes and values their contributions and where they can count on reciprocity,

then they become naturally more willing to share their knowledge (Cabrera & Cabrera,

2005). Thus, for fostering knowledge sharing, organizations must create a trusting

environment.

Some researchers have demonstrated that FCBs may have too much personalized

control. For example, Hong Kong partners may not be willing to share their

management and marketing knowledge in the HKCI, which may impact the growth of

the latter (Merck & Yeung, 2003). Therefore, the management of FCBs may require

appointment of Non-FCB members into the board of directors of FCBs. Such a move

may send a signal to the employees that high abilities of the employees are highly

respected and needed in FCBs.

5.8 Contributions

The major contributions of this study can be summarized as follows. First, knowledge

sharing is driven by the AMO factors. Second, the study fills the gap in the literature

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concerning the role of FCBs as a moderating factor affecting the relationship of the AMO

model and knowledge sharing. Third, the study highlights the role of managers in FCBs

in relation to the promotion of the AMO factors and enhancement of the competitive

advantages by sustaining long-term improvements. Firms may provide training for

workers to encourage the development of knowledge sharing because it is an important

determinant of the intention to share knowledge. The development of an affective trust

can also be nurtured during such trainings, which will encourage employees to

consistently demonstrate a genuine concern for their colleagues and act in ways that is

in the best interests of their colleagues. One way to encourage managers and peers to

act in this way is to provide them with an environment that fosters trust and friendly

cooperation, and in which rewards are collective rather than individualistic. For

example, incentive systems to reward group success may motivate knowledge sharing

and foster team spirit within a firm.

Finally, the distinct characteristics of FCBs is to facilitate knowledge sharing with a

strong sense of identity (Lansberg, 1999). Knowledge sharing occurs when people who

share a common purpose, experience similar problems come together to exchange

ideas. Although knowledge is very important, FCBs may have several characteristics that

can potentially inhibit such exchanges. In addition, family members may not have the

same levels of entrepreneurial spirt (Merck & Yeung, 2003). Family rivalries may just

limit some senior members to share knowledge with the next generation. In fact, some

of next generation managers may not want to learn at all. These rivalries are common

and happen in family members or non-family members in FCBs (Grote, 2003). This

finding is consistent with the findings of past studies (Zahra, 2007; Gomez–Mejia et al.,

2001).

5.9 Limitations and future research

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The first limitation pertains to the research context, as all data were collected in Hong

Kong. Trading behaviours in Hong Kong may not be generalizable to other Chinese

business communities. Other countries, such as Singapore and Taiwan, may be further

considered in future research focused on firms within the Asia-Pacific Region.

The second limitation relates to the research context. The adopted questionnaire for

this study was distributed online, using a convenience sampling approach to collect data

from the HKCI firms, targeting participants, such as CEOs, top management, and senior

managers. With this profile, it may be difficult to obtain good response rates.

Furthermore, convenient sampling is problematic in that it may not be representative

of the entire population being examined.

Third, the quantitative survey method measures the strengths of the statistical

relationships analysed and may not provide a conclusive direction of the cause and

effects involved. In addition, external factors, such as staff turnover, benefits and salary

packages, as well as market needs are significant factors that influence training for

workers, incentive systems, and trust (Baker et al., 1988; Batt, 2002). Hence, this study

may be unable to comment on the effect of factors that were not considered.

Fourth, the design of this study uses small a sample size that may be unable to

sufficiently support the results. This also creates high multicollinearity in all three

interactions. Nevertheless, this study used the Process Macro in SPSS is a tool to

bootstrap the sample from 100 to 1000 units, and it helps solve the high

multicollinearity problem encountered in a multiple regression analysis (Preacher &

Hayes, 2008; Nimon et al., 2010).

Fifth, the data were obtained from a single source (i.e., managers or top management)

and a single method (i.e., Likert scale-based questionnaire). Therefore, common-

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method biases may be present, because respondents might have responded similarly

on all scales given the similarity of their format (Cook & Campbell, 1983).

Meanwhile, several suggestions for future research are also offered.

First, this study is the first attempt to adapt the framework of Zahra et al. (2007) to test

the knowledge sharing as moderated by FCBs in relation to AMO factors for improving

knowledge-sharing within the HKCI. This study can be adopted to further explore how

the AMO model works between formal and informal knowledge sharing outcomes

individually. Furthermore, the conceptual model should be examined using different

industries and cultural groups, because contextual factors may influence the

hypothesized relationships.

Second, qualitative research methods can also be used to investigate the antecedents

of intention to share explicit and implicit knowledge. Qualitative research methods

might be particularly valuable when examining the antecedents of sharing informal

knowledge, because articulating and measuring informal knowledge using quantitative

methods is more difficult than doing the same for formal knowledge.

Third, control variables, such as role competence, can also be used in future studies,

because sharing knowledge does not always depend on an individual’s willingness to

share.

Fourth, future research can employ a longitudinal approach to test the conceptual

model and obtain a better understanding of the hypothesized research’s causal

mechanisms.

Finally, from a methodological and analytical perspective, smart PLS can be used for

undertaking variance-based SEM and increasing the amount of information in the

original data, because such an approach reduces the effect of random sampling errors

via bootstrapping procedures (Hair, 2016; Peng & Lai, 2012).

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5.10 Summary and concluding remarks

Refer to the table 5.11 Result and Discussion of Hypotheses testing Findings, this study

explored the moderating role of FCBs in knowledge sharing and fills a gap in the

international literature by exploring its relationship with AMO factors in the context of

HKCI firms. The study has theoretical and managerial implications.

Table 5.11 Result and Discussion of Hypotheses Testing Findings

Research questions Related Hypotheses Result and Discussion

Q1 Hypothesis 1.1 (H1.1) Results: Sig (.75) Marginal supported

Does ability ( training workers), motivation ( providing incentive systems), opportunity (creating an environment of trust) of employees have a significant effect on knowledge sharing in the HK clothing industry (HKCI)?

In the HKCI, Training for Workers is positively associated with Knowledge Sharing.

The result is marginally significant for training for workers and has a moderate and prositive influence on knowledge sharing. Training in inter-personal communication skills may help employees to exchange information and knowledge effectively. (Aragón-Sánchez, 2003; Cabrera & Cabrera, 2005; Wong & Aspinwall, 2005),

Hypothesis 1.2 (H1.2) Results: Sig (.35) Supported

In the HKCI, Incentive Systems is positively associated with Knowledge Sharing.

The result supported incentive systems as a predictor of knowledge sharing performance. Therefore, in designing incentive and rewards systems it is vital firms should provide new intrinsic opportunities that allow one to learn and actualize their full pontential. ( Sharratt & Usoro, 2003; Wong & Aspinwall, 2005).

Hypothesis 1.3 (H1.3) Results:Sig (.000) Strongly Supported

In the HKCI, Trust is positively associated with Knowledge Sharing.

The result is the strongest in relation to trust and it is the most effecitve and often the least costly method to encourage people to share their knowledge. However, building trust requires sincere efforts by a firm’s leaders (Dyer & Singh, 1998; Sharratt & Usoro, 2003). Overall the first major set of findings from H1.1 , H1.2, H1.3 answers the first research question that AMO factors positively influence knowledge sharing in HKCI.

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Q2 Hypothesis 2.1(H2.1) Results:Sig (.04) Supported

What are the key relationships between FCBs , AMO factors and knowledge sharing in the HKCI firms?

In the HKCI, FCBs acts as a moderating factor in the relationship between Ability ( Training for Workers) and Knowledge Sharing.

The result supported the assumption that FCBs moderate the impact of kowledge-sharing behavior when training for workers is provided . Lower values of FCBs will increase the strength of the relationship between training for workers and knowledge sharing (Kotey, 2007 and Aragon-sancher,2003).

Hypothesis 2.2( H2.2) Results:Sig (.01) Supported

In the HKCI, FCBs acts as a moderating factor in the relationship between Motivation ( Incentive Systems) and Knowledge Sharing.

The result identifed that FCBs have a stronger moderating effect on the relationship. Lower values of FCBs will increase the strength of the relationship between incentive systems and knowledge sharing.

Hypothesis 2.3 (H2.3) : Results:Sig (.00) Strongly Supported

In the HKCI, FCBs acts as a moderating factor in the relationship in between Opportunity ( trust) and knowledge sharing

The result is the strongest to support FCBs moderating effect. Lower involvement of FCBs will increase the strength of the relationship between trust and knowledge sharing (Zahra, 2010; Zahra et al., 2007). The second major finding answered Q2 that paternalism and personalized culture in FCBs can create a neagtive impact o knowledge sharing.

For practical managerial implications, this research is timely study as some junior family

members of business clans may have no ambition to seek new knowledge or for growing

the business as they may simply lack interest in the family business (Le Breton-Miller et

al., 2004). Changing business environments in this major manufacturing sector in Hong

Kong are forcing family-owned clothing industry firms to look for suitable strategies to

improve their firms’ competitive advantages. Creating and managing unique knowledge

is important in sustaining a firm’s competitive advantage over others (Barney 1991;

Lank, 1997). Consequently, by considering the ownership type (FCBs) in the analysis,

acknowledging the need towards a shared understanding of the HKCI firms may help

such firms develop their capability for business success in the future, especially in view

of shifts in intergenerational leadership.

Business performance can be enhanced through knowledge sharing. A firm’s

performance in today’s dynamic environment and its sustainable competitive

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advantages relies on its ability to fully equip its knowledge-management processes to

its business needs.

The application of AMO factors is likely to foster knowledge sharing via establishing an

organizational environment that is contributory to sharing; knowledge sharing can be

encouraged by building positive attitudes against sharing and enhancing perceptions

and norms towards sharing. Current HRM literature argues that firms should have a

strategic orientation towards acquiring and sharing knowledge within and across

organisations (Wright et al., 1994) that endorse it to build firm-specific human capital

for developing a sustainable competitive advantage.

The above implies that firms can be succeed with various strategic is subject to various

types of human capital... However, in a dynamic and-changing competitive

environment, one key capability that is applied for effective regardless of a firm’s

strategy: is the ability to continuously to renew its knowledge base. HRM practices

should therefore, dedicate greater efforts to enhance the creation, acquisition and flow

of knowledge through knowledge sharing for creating an adaptive organisation.

To this end, future scholarship should focus on developing an understanding of

knowledge-sharing by AMO model and leadership execute that will facilitate the

exchange of knowledge culture in firms.

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Appendix A

Email Invitation

Dr. Ashish Malik Faculty of Business and Law Newcastle Business School Tel: (02) 43484133 Email: [email protected]

Subject: Information Statement for the Research Project: The impact of AMO model on knowledge sharing (KS) in Family controlled businesses (FCBs) in

Hong Kong’s Clothing industry (HKCI). Dear Sir/Madam,

This study is a research project for the Doctor of Business Administration (DBA) degree at The University of Newcastle, Australia. It is being carried out by Ms. Lee Yuk Ling Angie (Email: [email protected]), under the supervision of Dr. Ashish Malik (Email: [email protected]). Faculty of Business and Law at the University of Newcastle. The research will be undertaken in Hong Kong.

You are invited to participate in this anonymous study employing an online

questionnaire-based design focusing on the impact of AMO (ability, motivation and

opportunity) model on knowledge sharing (KS) in Family controlled businesses

(FCBs) in Hong Kong clothing industry (HKCI).

I attach to this email details of the research project in the attached Organisation

Consent form(OCF), Information statement for organisation(ISO), Participant

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Information Statement (PIS), which also contains a link to the web-based

questionnaire. I would suggest you to either save this OCF, ISO,PIS or print it for

your future records.

Please sign the OCF and have a scanned copy returned to the named researcher for

your approval. I would greatly appreciate if you could circulate this email with the

attachment to the following employees who are 18 years or over:

- The CEO

- General Manager

- Manager (or designate)

Although it is stated in the PIS, I would reiterate that under no circumstances

would any of the participants be identified in the study’s reporting.

For the details, please open and read the PIS document and click on the research eSurvey Creation link to start the survey since it will only take 15 minutes to complete it. Your participation in completing the survey is highly appreciated.

Yours sincerely

Supervisor: Dr. Ashish Malik

Student Researcher: Ms. Angie Lee

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Appendix B

Information Statement for Organization

INFORMATION STATEMENT FOR ORGANISATION Date: 3rd, February, 2016 Dr Ashish Malik BO 1.16 Business Office, Central Coast Campus, Ourimbah, 2258 Newcastle Business School, University of Newcastle, Australia. Ph: 02-434 84133 (Extension: 84133). To The CEO/ Vice-President (or designate e.g. General manager) Organisation Name Address Hong Kong Dear Sir/Madam

Information Statement for the Research Project: The impact of AMO model on knowledge sharing (KS) in Family controlled businesses

(FCBs) in Hong Kong’s Clothing industry (HKCI).

Your organisation is invited to participate in the above mentioned research project which is being conducted by a student, Ms. Lee Yuk Ling Angie, who is undertaking the Doctor of Business Administration degree, under the supervision of Dr. Ashish Malik from the Schools of Business and Law at the University of Newcastle. The research will be undertaken in Hong Kong. Why is the research being done?

The purpose of the research is to investigate the relative importance ability, motivation and opportunity (AMO) in sharing knowledge in Family Controlled business in the Hong Kong (HK) clothing industry. More specifically, analysing the role of incentive systems, training for workers and trust and knowledge sharing in the HK clothing industry.

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Who can participate in the research?

Your organisation is invited to participate in this study. By forwarding this email and attached link to the study’s questionnaire in the Participant Information Sheet document attached to this email message to a relevant practitioner who is in the position of a Manager/Top executive/business ownership or owner of a family owned business in the Hong Kong clothing industry your organisation provides consent to participate in this study. What choice does your organisation have? Participation in this research is entirely your organisation’s choice. By accepting our request for the distribution of the recruitment email containing the participant information statement, containing the anonymous questionnaire link, to your employees (as specified above), your organisation provides informed consent. Please note that due to the anonymous nature of the questionnaire, once you forward the survey recruitment email to participate, your organisation will not be able to withdraw from the study. How much time will it take? The questionnaire will take between 10-15 minutes. What are the risks and benefits of participating? There are no anticipated risks associated with participating in this research project. Whilst there are no anticipated benefits to you personally in participating this research project, the research aims to benefit family businesses in HK’s clothing industry by knowledge sharing and success of family business in this industry. This study also aims to provide an understanding and learning about how family factors influence knowledge sharing in the HK clothing industry. How will your privacy be protected?

As this study will use an online questionnaire, any personal details of your organisation will not be identifiable. Confidentiality of your organisation will be maintained at all times. The data collected will be used to complete statistical analysis. The collected data will be stored on a password protected computer accessible only by the student researcher and, where necessary, by the study’s Chief Investigator. Access to the data via the online questionnaire software will be through a protected password in the Student Researcher’s, and if accessed by the Chief Investigator, it will also be password protected in the Chief Investigator’s computer. For further data analysis, data inputted in the SPSS V22 software will also be password protected for additional security measures. The data will be disposed in accordance with the policy and procedures for disposing confidential materials as per the University of Newcastle’s policies. In addition, data will be retained for a minimum of 5 years as per University of Newcastle requirements. How will the information collected be used?

The collected data will be used as part of Ms Lee Yuk Ling Angie’s thesis which will be submitted to the University of Newcastle’s library. The results of this research

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project may also be presented in academic publications such as journal articles, books and conferences. Organisations are able to receive a copy of the summary report by emailing [email protected] after October 2016. What do you need to do to participate? Please read this Organisation Information Statement and be sure you understand its contents before you provide your consent to participate. Further information If you would like further information please contact me at [email protected] Thank you for considering this invitation. Yours sincerely Ashish Malik Dr Ashish Malik Lecturer-HRM Newcastle Business School University of Newcastle Ms Lee Yuk Ling Angie Student Researcher University of Newcastle Tel: +852 93637204 Email: [email protected]. Complaints about this research This project has been approved by the University’s Human Research Ethics Committee, Approval No. H-2015-0383Should you have concerns about your rights as a participant in this research, or you have a complaint about the manner in which the research is conducted, it may be given to the researcher, or, if an independent person is preferred, to the Human Research Ethics Officer, Research Office, The Chancellery, The University of Newcastle, University Drive, Callaghan NSW 2308, Australia, telephone (02) 49216333, email Human-

[email protected]. Alternatively, you can contact Ms Yan Chau, our local Hong Kong Management Association Administrator at [email protected] or, 16/F, Tower B, Southmark , 11 Yip Hing Street, Wong Chuk Hang, HONG KONG , Phone: (852) 2774 8547

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Appendix C

Information Statement for Organization

Date: 3rd, February, 2016 Dr. Ashish Malik Faculty of Business and Law Newcastle Business School Tel: (02) 43484133 Email: [email protected]

Information Statement for the Research Project: The impact of AMO model on knowledge sharing (KS) in Family controlled

businesses (FCBs) in Hong Kong’s Clothing industry (HKCI).

You are invited to participate in the above mentioned research project which is being conducted by a student, Ms. Lee Yuk Ling Angie, who is undertaking the Doctor of Business Administration degree, under the supervision of Dr. Ashish Malik from the Schools of Business and Law at the University of Newcastle. The research will be undertaken in Hong Kong. Why is the research being done?

The purpose of the research is to investigate the relative importance ability, motivation and opportunity (AMO) in sharing knowledge in Family Controlled business in the Hong Kong (HK) clothing industry. More specifically, analysing the role of incentive systems, training for workers and trust and knowledge sharing in the HK clothing industry. Who can participate in the research?

You are invited to participate in this questionnaire if you are aged over 18 and a relevant practitioner in the position of a Manager/Top executive/business ownership or owner of a family owned business in the Hong Kong clothing industry.

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What would you be asked to do?

If you agree to participate after reading this participation information sheet, you will be invited to complete in an online questionnaire on knowledge sharing in the HK clothing industry by clicking on the web link provided at the end of this participant information sheet. What choice do you have?

Participation in this research is entirely your choice. Only those people who give their informed consent will be included in the project. Whether or not you decide to participate, your decision will not disadvantage you. If you do decide to participate, you may withdraw from the project at any time prior to submitting your completed questionnaire. Please note that due to the anonymous nature of the questionnaire, you will not be able to withdraw your response after it has been submitted. Please be informed that by completing the questionnaire you and your organisation will not be identifiable as the online questionnaire is anonymous.

How much time will it take?

The questionnaire should take about 10-15 minutes to complete all the sections.

What are the risks and benefits of participating?

There are no anticipated risks associated with participating in this research project. Whilst there are no anticipated benefits to you personally in participating this research project, the research aims to benefit family businesses in HK’s clothing industry by knowledge sharing and success of family business in this industry. This study also aims to provide an understanding and learning about how family factors influence knowledge sharing in the HK clothing industry. How will your privacy be protected?

As this study will use an online questionnaire, any personal details of the participants will not be disclosed, and nobody will be identifiable. Confidentiality of all respondents will be maintained at all times. The data collected will be used to complete statistical analysis. The collected data will be stored on a password protected computer accessible only by the student researcher and, where necessary, by the study’s Chief Investigator. Access to the data via the online questionnaire software will be through a protected password in the Student Researcher’s, and if accessed by the Chief Investigator, it will also be password protected in the Chief Investigator’s computer. For further data analysis, data inputted in the SPSS V22 software will also be password protected for additional security measures. The data will be disposed in accordance with the policy and procedures for disposing confidential materials as per the University of

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Newcastle’s policies. In addition, data will be retained for a minimum of 5 years as per University of Newcastle requirements. How will the information collected be used?

The collected data will be used as part of Ms Lee Yuk Ling Angie‘s thesis which will be submitted to the University of Newcastle’s library. The results of this research project may also be presented in academic publications such as journal articles, books and conferences. Participants can request a summary of the results of this research project by sending a request to the student research by email address: [email protected].

The Participants are able to receive a copy of the summary report by emailing [email protected] after October 2016. What do you need to do to participate?

Please read this Participant Information Statement and print a copy of the same for your records so you are sure you understand its contents before you agree to participate by clicking on the link to the online questionnaire below. If there is anything you do not understand, or you have questions, please contact the student researcher or the chief investigator. After you have read and understood the participant information statement and would like to participate, please click on the link to the questionnaire. Please be informed that completion and submission of the questionnaire implies that you agree to participate. Please click on the link below if you wish to participate in the questionnaire: https://www.esurveycreator.com/s/742c3cd Further information

If you would like further information please contact Dr. Ashish Malik at the email address above to obtain further information about the project.

Thank you for considering to participate in this study. Dr Ashish Malik, Chief Investigator University of Newcastle Tel: (02) 43484133 Email: [email protected] Ms Lee Yuk Ling Angie Student Researcher University of Newcastle Tel: +852 93637204 Email: [email protected].

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Complaints about this research This project has been approved by the University’s Human Research Ethics Committee, Approval No. H-2015-0383Should you have concerns about your rights as a participant in this research, or you have a complaint about the manner in which the research is conducted, it may be given to the researcher, or, if an independent person is preferred, to the Human Research Ethics Officer, Research Office, The Chancellery, The University of Newcastle, University Drive, Callaghan NSW 2308, Australia, telephone (02) 49216333, email Human-

[email protected]. Alternatively, you can contact Ms Yan Chau, our local Hong Kong Management Association Administrator at [email protected] or, 16/F, Tower B, Southmark , 11 Yip Hing Street, Wong Chuk Hang, HONG KONG , Phone: (852) 2774 8547

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Appendix D

Survey

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Appendix E

Frequency Tables

Appendix E1: Frequency Table of Items for “Training for workers”

Frequency Percent N Mean Stn. Deviation Item 1

TWtt

TW1 Strongly Disagree 5 4.2 Disagree 8 6.7 Moderately Disagree 19 15.1 Neither agree nor disagree 25 21.0 Moderately Agree 28 23.5 Agree 25 21.0 Strongly Agree 10 8.4 All respondents 119 4.50 1.55 Item 2 TW2 Strongly Disagree 2 1.9 Disagree 7 5.9 Moderately disagree 23 19.3 Neither agree nor disagree 19 16.0 Moderately Agree 30 25.2 Agree 31 26.1 Strongly Agree 7 5.9 All respondents 119 4.59 1.44 Item 3 TW3 Strongly Disagree 4 3.4 Disagree 15 12.6 Moderately disagree 20 16.8 Neither agree nor disagree 24 20.2 Moderately Agree 25 21.0 Agree 25 21.0 Strongly Agree 6 5.0 All respondents 119 4.26 1.56 Item 4 TW4 Strongly Disagree 5 4.2 Disagree 8 6.7 Moderately disagree 20 16.8 Neither agree nor disagree 24 20.2 Moderately Agree 32 26.9 Agree 25 21.0 Strongly Agree 5 4.2 All respondents 119 4.39 1.47 Item 5 TW5 Strongly Disagree 7 5.9 Disagree 10 8.4 Moderately disagree 22 18.5 Neither agree nor disagree 21 17.6 Moderately Agree 24 20.2 Agree 27 22.7 Strongly Agree 8 6.7

All respondents 119 4.33 1.64

Overall Perceived Value Score All respondents 4.41 1.38

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Appendix E.2: Frequency Table of Items for “Incentive systems” Frequency Percent N Mean Stn. Deviation Item 1

TWtt

IS1 Strongly Disagree 4 3.4 Disagree 8 6.7 Moderately Disagree 20 16.8 Neither agree nor

disagree

18 15.1 Moderately Agree 37 31.1 Agree 26 21.8 Strongly Agree 6 5.0

All respondents 119 4.50 1.47 Item 2 IS2 Strongly Disagree 2 1.7 Disagree 7 5.9 Moderately Disagree 20 16.8 Neither agree nor

disagree

17 14.3 Moderately Agree 36 30.3 Agree 27 22.7 Strongly Agree 10 8.4 All respondents 119 4.67 1.44 Item 3 IS3 Strongly Disagree 3 2.5 Disagree 11 9.2 Moderately Disagree 18 15.1 Neither agree nor

disagree

17 14.3 Moderately Agree 41 34.5 Agree 22 18.5 Strongly Agree 7 5.9

All respondents 119 4.48 1.47 Item 4 IS4 Strongly Disagree 3 2.5 Disagree 7 5.9 Moderately Disagree 20 16.8 Neither agree nor

disagree

19 16.0 Moderately Agree 32 26.9 Agree 28 23.5 Strongly Agree 10 8.4

All respondents 119 4.63 1.49 Item 5 IS5 Strongly Disagree 1 .8 Disagree 11 9.2 Moderately Disagree 15 12.6 Neither agree nor

disagree

28 23.5 Moderately Agree 31 26.1 Agree 27 22.7 Strongly Agree 6 5.0 All respondents 119 4.53 1.39

Overall Perceived Value Score All respondents 4.56 1.31

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Appendix E.3: Frequency Table of Items for “Trust”

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Appendix E.4: Frequency Table of Items for “Knowledge sharing”

Frequen

cy

Perce

nt

N Me

an

Stn.

Deviation Item

1

TWtt

K1 Strongly

Disagree

1 .8

FK Disagree 4 3.4

Moderately

Disagree

27 22.7

Neither agree

nor disagree

23 19.3

Moderately

Agree

42 35.3

Agree 15 12.6

Strongly Agree 7 5.9

All respondents 119 4.46 1.27

Item

2

K2 Strongly

Disagree

1 .8

FK Disagree 7 5.9

Moderately

Disagree

22 18.5

Neither agree

nor disagree

25 21.0

Moderately

Agree

44 37.0

Agree 15 12.6

Strongly Agree 5 4.2

All respondents 119 4.42 1.26

Item

3

K3 Strongly

Disagree

2 1.7

FK Disagree 9 7.6

Moderately

Disagree

17 14.3

Neither agree

nor disagree

39 32.8

Moderately

Agree

28 23.5

Agree 18 15.1

Strongly Agree 6 5.0

All respondents 119 4.35 1.34

Item

4

K4 Strongly

Disagree

1 .8

FK Disagree 4 3.4

Moderately

Disagree

25 21.0

Neither agree

nor disagree

27 22.7

Moderately

Agree

32 26.9

Agree 24 20.2

Strongly Agree 6 5.0

All respondents 119 4.52 1.30

Item

5

K5 Strongly

Disagree

1 .8

FK Disagree 8 6.7

Moderately

Disagree

29 24.4

Neither agree

nor disagree

26 21.8

Moderately

Agree

25 21.0

Agree 25 21.0

Strongly Agree 5 4.2

All respondents 119 4.35 1.38

Item

6

K6 Strongly

Disagree

1 .8

IK Disagree 3 2.5

Moderately

Disagree

23 19.3

Neither agree

nor disagree

29 24.4

Moderately

Agree

35 29.4

Agree 22 18.5

Strongly Agree 6.8 5.0

All respondents 2.5 119 4.55 1.25

Item

7

K7 Disagree 1 .8

IK Moderately

Disagree

7 5.9

Neither agree

nor disagree

23 19.3

Moderately

Agree

29 24.4

Agree 31 26.1

Strongly Agree 25 21.0

Disagree 3 2.5

All respondents 119 4.42 1.29

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LEE, Yuk Ling Angie Student Number: C3173954

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Item

8

K8 Disagree 1 .8

IK Moderately

Disagree

6 5.0

Neither agree

nor disagree

21 17.6

Moderately

Agree

24 20.2

Agree 36 30.3

Strongly Agree 25 21.0

Disagree 6 5.0

All respondents 119 4.57 1.32

Item

9

K9 Disagree 1 .8

IK Moderately

Disagree

3 2.5

Neither agree

nor disagree

26 21.8

Moderately

Agree

23 19.3

Agree 35 29.4

Strongly Agree 20 16.8

Disagree 11 9.2

All respondents 119 4.61 1.35

Item

10

K10 Disagree 1 .8

IK Moderately

Disagree

4 3.4

Neither agree

nor disagree

22 18.5

Moderately

Agree

27 22.7

Agree 37 31.1

Strongly Agree 20 16.8

Disagree 8 6.7

All respondents 119 4.57 1.29

Overall Perceived Value Score All respondents 4.48 1.09